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Northern Sky Says ATC Will Revolutionize MSS Industry in the U.S. |
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CAMBRIDGE, Mass., March 16, 2006/Satnews Daily/ — Northern Sky Research (NSR) has predicted that ancillary terrestrial component (ATC) services will revolutionize the mobile satellite services industry and sees the ATC market generating $4.1 billion in revenue by 2010.
In a recently released market survey and forecast report “Mobile Satellite Services, 2nd Edition,” NSR concludes that from an estimated $42.5 million in revenues for 2006, the market is expected to reach over $2.3 billion by 2010 yielding total revenues of $4.1 billion over a five-year period.
Revenue growth will be driven by government demand in the early years of service for applications that improve disaster preparedness and address public safety needs. By the end of the decade, demand is expected to shift rapidly in favor of consumer markets, NSR said.
The Federal Communications Commission (FCC) has granted a large amount of spectrum for the development of ATC services. However, this allocation has been met by strong opposition from cellular providers and the broadcast industry. Companies opposed to ATC argue that satellite-based mobile services do not have a compelling proposition, and a large spectrum allocation that allows mobile satellite services to complement its offerings with terrestrial capabilities is unjustified to revive the industry.
However, in seeking to implement digital divide programs and in addressing better technical platforms for disaster preparedness, the FCC may have intentionally allocated spectrum specifically to address these needs, NSR noted.
“The FCC allocations are difficult to second guess, but if the intention is to improve teledensity rates in rural America, MSS/ATC does provide the vehicle by which this can be achieved. Moreover, an MSS/ATC offering further provides first responders and the general population with a communications tool that leverages terrestrial and satellite networks when emergency situations take place,” says Jose del Rosario, senior analyst of NSR and author of the report.
As with any new technology in the MSS industry, the government will likely be a vital end user group for MSS/ATC offerings. The recent experience in Hurricane Katrina showed that communication services are critical before, during and after disaster strikes., NSR said. Back-up networks, redundancy and "always-on" capabilities are paramount to prepare for, monitor and hit-the-ground running when emergency situations occur.
The FCC licensed MSV and authorized Globalstar, and is likely to issue ATC licenses to other players in the very near term. Part of the issuance of licenses is a large allocation of spectrum, which is higher compared to some of the large cellular service providers in the U.S. such as T-Mobile.
Recent Stories: Digital Media Distribution via Satellite Market to Reach $672.8-M by 2010, Says Northern Sky Northern Sky Says MSS Market to Generate $8.6-B in Revenue by 2010 Northern Sky: IPTV via Satellite to Generate $1.6-B in Total Revenues From 2005-2010 |
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