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Satellite Poised for Prosperity

23 января 2007
During 2006 the satellite industry has shown continued positive growth marked with important events and signs of a prosperous future. Despite the positive outlook, satellite is still a small niche within the global telecommunications and media sector.

For example, says Near Earth, an investment firm specializing in the satellite and communications markets, the total cost of commercial satellite launches in 2006 is about $4 billion, whereas Verizon alone announced capital expenditures for new fiber of $25 billion. In addition, Clear Channel, with flat revenue prospects at best, was recently valued at $26.7 billion, nearly twice as high as the entire satellite radio industry combined.

The firm said the satellite industry has many reasons to be happy these days, but the telecommunications/media world will continue to be driven largely by technology evolution and changes in end user needs on the ground. Especially is this true, Near Earth said, in the dynamic video consumption arena and the rapidly expanding broadband wireless market.

"The good news is that despite a seemingly unstoppable satellite decline in overall telecommunications and media market share versus terrestrial providers, the total pie of demand and revenues is growing at a sufficient rate to provide the satellite sector with significant and attractive growth opportunities for the foreseeable future," the group said.


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