PALO ALTO, Calif., June 22 -- Satellite operators have experienced a significant increase in US military and government demand for commercial satellite communications since the events of Sept. 11, according to Frost & Sullivan, a market analysis firm that has published a new report, "US Military and Government Demand for Global Satellite Communications."
The report demonstrates that revenues from US military users of satellite communications will increase rapidly throughout the remainder of the decade. Moreover, though industry participants fear that military demand would be short-lived, the company said, "solid and enduring growth drivers are fueling demand."
Karim Nour, Frost & Sullivan Space & Communications analyst and a former US Marine, said, "There is a misconception in the marketplace that military demand for satellite communications is a function of wartime operations -- it isn't. US military demand will definitely continue to increase, potentially to over $1 billion by 2009, even if the US military engages in no further conflict for the remainder of the decade. We've approached the market from several different angles, and all of our analysis leads us to this conclusion."
Current revenues from combined US military and US civilian government commercial leasing are an estimated $423 million, and the growth of projects is estimated to be $925 million by 2009, according to the report.
"The most serious restraint to the market is lack of communication between government and industry," said Nour.
The report illustrates how this lack of communication could cause satellite operators to lose potential revenue from military and government sales, Frost & Sullivan said. It also shows how it could cause the government to lose the opportunity to at once lower its cost for satellite communications procurement and improve its access to satellite communications resources, according to the company. Longer-term contracts for satellite capacity procurement would enable the Department of Defense to lower costs and improve its management of satellite communications use, it added.
For more information, visit: www.frost.com