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ISCe 2006 Highlights Key Industry Trends |
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By Virgil Labrador Managing Editor, Satnews
by Virgil Labrador Satnews Managing Editor
SAN DIEGO, CA, June 15, 2006/Satnews Daily/ — The prevailing mood among the many key industry executives that spoke and attended the recently-concluded ISCe 2006 Conference and Expo was of optimism and confidence in the satellite industry sustaining continued growth in the next few years.
The annual “State of the Satellite Industry Report” was released by Satellite Industry Association (SIA) executive director David Cavossa during one of the plenary sessions at ISCe. SIA reported that the commercial satellite industry continues to grow generating some $88.8 billion in revenue in 2005, an increase of 7.4 percent over 2004 industry-wide revenues.
Cavossa noted that: “After a few difficult years, the satellite industry has begun its rebound fueled by new technologies and applications in the mobile satellite sector and consumer applications such as HD television and satellite radio. This growth is expected to continue, driven as well by growing government demand for continuity of communications and the renewed interest by financial markets to invest in satellite companies.”
This year’s ISCe organized by Hannover Fairs, USA, is being held jointly with the 23rd American Institute of Aeronautics and Astronautics (AIAA) International Communications Satellite Systems Conference (ICSSC). The ISCe conference is like many conferences in one, being held not just in conjunction with the AIAA conference but also incorporating the Five Burning Questions conference co-organized by the Carmel Group and also featured workshops organized by the Global VSAT Forum and the World Teleport Association.
ISCe 2006 and the AIAA conference jointly was attended by over 1,000 participants. ISCe 2006 attendance was a 15 percent increase from last year according to organizers. Among attendees were a number of CEOs of major satellite companies including Pascale Sourisse, CEO-Alcatel Alenia Space; David Leonard, CEO-WildBlue Communications; Pradman Kaul, Chairman and CEO-Hughes Network Systems; Mark Dankberg, CEO-ViaSat; Patrick Brant, CEO-Loral Skynet; Ed Horowitz, CEO, SES Americom; Gary Hatch, CEO-ATCi; Ronald Samuel, COO-Eutelsat, among others.
“I think we have proven why the ISCe conference and exhibition is celebrating its fifth year anniversary this year. By concentrating on providing our attendees the best access to the industry’s top executives and offering them a growing exhibition component we have secured our place in the industry as the satellite industry gathering place on the West Coast on a yearly basis,” said ISCe conference chairman David Bross.
Attendees at the fifth annual ISCe 2006 were asked to participate in a survey conducted by Futron Corporation on current and future business opportunities and trends in the government and commercial satellite industry sectors. Among the key findings of the study:
• Thirty-two percent of respondents reported that government agencies accounted for more than half of their new business in 2005, with 65 percent stating that, among government agencies, the Department of Defense (DoD) was the primary source of their new business last year.
• Fifty-four percent are targeting new products and services for the DoD during the next two to three years, with the Department of Homeland Security, Other Public Safety and Other Civil Government Agencies (e.g., State Department, Department of Agriculture) each being targeted by 20–25 percent of respondents.
• For both government and commercial markets, satellite capacity sales represent the largest area of anticipated new business. More than 40 percent of ISCe attendees anticipate their biggest growth will come in this area during the next two to three years.
• A slightly smaller percentage (25–30) forecast their greatest areas of new revenue to be new hybrid network services hardware sales. New software products and services are anticipated to lead new revenues for less than 10 percent of respondents for both government and commercial markets.
• Respondents reported that their commercial revenues in 2005 were fairly evenly divided among video distribution, private data network, and mobile services. They anticipate that this split will continue over the next two to three years, with mobile services growing slightly faster than the other two markets.
Overall, respondents in the HFUSA/Futron survey indicated they believe key sectors for industry growth will continue to be satellite capacity sales to DoD and commercial customers, with mobile services growing faster than either video or private network business. Furthermore, while a small percentage of current business is derived from hybrid network solutions, more than half of respondents say the ability to procure such solutions from a single provider is very important.
“The ISCe conference is fast gaining a reputation for being the annual event with the highest quality, must-attend conference sessions and networking events in this business. We intend to reinforce this reputation even more at ISCe 2007. Our event continues to be recognized as the pre-eminent conference where all members of the satellite community can have access to the world’s top executives and decision makers through the many receptions, gatherings and dinners that we sponsor during the week., said Hannover Fairs USA President Art Paredes.
“This year we were very excited to have partnered with the Society of Satellite Profesionals International (SSPI) for the first-annual SSPI Beach Blast. We are hoping that this event could become an annual component of ISCe, added Bross. There were a number of receptions and networking opportunities at ISCe including a Wine Tasting reception organized by Satnews Publishers, one of the official media sponsors of ISCe.
On Wednesday evening, June 14, the Annual ISCe Awards were presented in a gala dinner at Sea World sponsored by Boeing. The winners were: Innovation Award: Hughes Network Systems, LLC; Leadership Award: JSAT; and the Lifetime Achievement Award to Joseph P. Clayton. The awards are presented to leading edge companies and individuals who have demonstrated innovation and excellence in the industry. The candidates were chosen from nominees from the industry and the final selection of winners was by the ISCe Board of Advisors composed of leading satellite executives.
The next ISCe show will be held June 5-7, 2007 at the same venue at the Hilton Resort in San Diego, California.
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