After a period of declining revenues, the commercial satellite communications industry is profiting from growing U.S. government and military business. The increased tempo and wide geographic scope of recent U.S. and coalition military activities have caused a surge in commercial leased satellite use. Industry experts predict this additional demand for video, voice and data services to contribute steadily to the market's growth for the next seven to eight years.
Changing market demands have prompted a major satellite telecommunications company to diversify its services. Moving beyond its traditional niche leasing transponder space on its large constellation of spacecraft, the company is branching into new areas such as broadband and cellular services. The Washington, D.C.-based firm also is a major provider of video, data and voice communications to the U.S. government.
An infusion of funding, some corporate restructuring and a new business plan are re-energizing one commercial satellite company as it creates new capabilities. These improvements could increase support of military operations and homeland security efforts. They have already lowered prices for satellite telephone users and helped a health care association put a backup communications system into place in rural areas sooner than planned.