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Strong signals
13 June 2014
13 June 2014: The Asia-Pacific direct-to-home (DTH) television industry is healthy, and helping to drive the largest growth market for satellite capacity in the world.A new report from Global Industry Analysts says the growing popularity of satellite TV, particularly in some of Asia's fast-developing countries, is the primary driver for transponder capacity along with the introduction of high-definition TV. 3G/cellular backhaul are other drivers. And most industry segments are looking forward enthusiastically to the impact of ultra-HDTV, which is expected to drive satellite capacity take up even further.With expectations of ongoing positive demand, satellites that add capacity above Asia are being launched with regularity along with new and bigger satellites to replace ageing craft. In addition, new players are entering the market, both for DTH and broadband.At least seven satellites have or will launch over Asia this year. These include SingTel's ST-3, which launched in February in a condosat agreement with ABS's (formerly Asia Broadcast Satellite) ABS-2. ABS-3A - the first HS702 all-electric craft from Boeing, connecting the Americas, Europe, Africa and the Middle East - launches in Q4 this year followed in 2015 by ABS-2A to 75 degrees (E), adding capacity, a greater footprint and redundancy. Hopes are that Malaysian operator Measat's new 3b satellite will go up shortly after last-minute delays to the early June 2014 launch. AsiaSat's AsiaSat-6 and AsiaSat-8 are scheduled to launch this year. Following SES-8's launch in December 2013, SES launches SES 9 in 2015 to 108.2 degrees (E).SingTel's satellite head, Lim Kian Soon, says the migration to 3G in emerging countries will have the biggest impact on Asia's satellite industry this year, "increasing demand for cellular backhaul". Lim says satellite backhaul continues to play a key role in connecting Asia's rural ar...
13 June 2014: The Asia-Pacific direct-to-home (DTH) television industry is healthy, and helping to drive the largest growth market for satellite capacity in the world.A new report from Global Industry Analysts says the growing popularity of satellite TV, particularly in some of Asia's fast-developing countries, is the primary driver for transponder capacity along with the introduction of high-definition TV. 3G/cellular backhaul are other drivers. And most industry segments are looking forward enthusiastically to the impact of ultra-HDTV, which is expected to drive satellite capacity take up even further.With expectations of ongoing positive demand, satellites that add capacity above Asia are being launched with regularity along with new and bigger satellites to replace ageing craft. In addition, new players are entering the market, both for DTH and broadband.At least seven satellites have or will launch over Asia this year. These include SingTel's ST-3, which launched in February in a condosat agreement with ABS's (formerly Asia Broadcast Satellite) ABS-2. ABS-3A - the first HS702 all-electric craft from Boeing, connecting the Americas, Europe, Africa and the Middle East - launches in Q4 this year followed in 2015 by ABS-2A to 75 degrees (E), adding capacity, a greater footprint and redundancy. Hopes are that Malaysian operator Measat's new 3b satellite will go up shortly after last-minute delays to the early June 2014 launch. AsiaSat's AsiaSat-6 and AsiaSat-8 are scheduled to launch this year. Following SES-8's launch in December 2013, SES launches SES 9 in 2015 to 108.2 degrees (E).SingTel's satellite head, Lim Kian Soon, says the migration to 3G in emerging countries will have the biggest impact on Asia's satellite industry this year, "increasing demand for cellular backhaul". Lim says satellite backhaul continues to play a key role in connecting Asia's rural areas. "As the market matured, satellite applications evolved; now we see satellite used for long-distance learning, content distribution and live billboards, among others," he says.Asia's satellite industry is benefiting from increased demand from DTH operators and mobile communications in rural areas, he adds. "We all know that broadcast and DTH is taking a lot of capacity in Asia. At the same time, we see in places like Indonesia and the Philippines, there are many remote areas where fibre can't reach," Lim says, highlighting the still prohibitive costs of bringing fibre or copper cable to these areas.AsiaSat chief executive, Bill Wade, admits that while there has been some pressure from the global economic downturn, "we see opportunities in markets where domestic supply cannot meet demand. This is the case in places where there is general economic improvement and a rapid increase in demand for entertainment, content and communications." Wade adds that this growth is driving demand for more capacity for applications such as DTH, mobile backhaul, and SD and HD content distribution in the markets of South Asia and Southeast Asia.AsiaSat-6 offers C-band capacity at a new orbital slot of 120oE. The satellite will provide a region-wide footprint with optimised performance over Asia, Australasia, Pacific Islands and Central Asia. AsiaSat-8, co-located at the company's 105.5oE hot spot, will also add incremental capacity.AsiaSat-9 is a replacement satellite for the 122oE slot and will launch in 2017.The region's other leading operators are, of course, not ignoring the same expansion drivers. Terry Bleakley, Intelsat's regional vice president of Asia Pacific sales, says he believes that, helped by the region's young populations, there's room for growth. "For example, in the developing economies, such as Indonesia, Vietnam and Thailand, rates of pay-TV penetration remain low, and as they become more mature, these markets represent an opportunity for satellite operators. In the more developed countries, such as South Korea and Japan, the media business is evolving as viewership habits change, with end-users demanding access to content on multiple devices, at their convenience and in all locations.""The growth in digital terrestrial [DTT] platforms also represents a big opportunity for satellite operators. The region may be a late adopter of DTT broadcasts - with Japan and South Korea the only two key markets to have completed the analogue switch-off process - but the process is underway," Bleakley says.He notes that competition is increasing in the region - as it is around the globe - and this reflects the needs of a growing region. "Competition has an impact on prices, but it isn't enough just to bring capacity to the region. Broadcasters need efficient distribution," Bleakley says. Intelsat serves the Asia-Pacific region with C- and Ku-band capacity on 11 satellites, including refreshed capacity on three satellites launched in 2012 - Intelsat-19, Intelsat-20 and Intelsat-22.European operator SES is also experiencing impressive Asia Pacific growth, especially in India. SES-8 at 95 degrees (E) launched in December 2013 and was 'full' within weeks, such is the demand. SES-9 will go up in 2015 and be placed alongside SES-7 at 108.2 degrees (E). The new satellites take SES' tally in the region to seven craft.SES' Asia Pacific and Middle East SVP, Deepak Mathur, says DTH is driving take-up, especially of pay-TV services, but also cautions that regulatory constraints and barriers present a "formidable challenge" for the satellite industry. "It is important that equal opportunities are given to both national and global satellite companies to ensure growth and create a truly open and vibrant satellite sector. It is not just important for players from outside the region, as the end-user is the ultimate beneficiary of true market dynamics," he says. Mathur expects Asia-Pacific DTH pay-TV viewers to mushroom from today's 80 million to about 160 million by 2022.Asia Broadcast Satellite (ABS) - now officially rebranded ABS as part of global expansion ambitions - is another operator making dramatic expansion moves. Mohamed Youssif, ABS' COO and Middle East president/MD, says the launch of ABS-2 craft in February this year was one of Arianespace's "best ever" and delivered the craft to within five kilometres of its target position. This gives the satellite another six to 12 months of fuel. Of ABS' six satellites, ABS-2 is the first in the fleet that ABS has configured, designed and ordered itself. The satellite is currently 70% full, with more than 200 TV channels among other clients.Youssif says clients are now being migrated onto ABS-2, which joins two other craft [ABS-1 at 75 degrees (E) and ABS-1A's new location at 78 degrees (E)]. He adds that the two older craft will be moved to new orbital positions for their remaining life. These will help generate extra revenue and build new markets. ABS-1A goes to 78 degrees (E) where ABS already has customers. ABS-1 will move to 159 degrees (E) and be rebranded as ABS-6. Youssif says ABS CEO, Tom Choi, told him recently that "the [ABS-2] launch has happened and that's a weight from my shoulders. Now it is on your shoulders". "That's true," Youssif says. "The role of ABS-2, as well as providing obvious capacity, has a much larger importance in that it places us firmly on the road as a global player. We do not want to be defined as a regional [Asia] player."What's next...The endless speculation about mergers, acquisitions and the fate of smaller regional operators in global world goes on... as do the responses from Asian operators at the centre of this particular water-cooler conversation.Measat chief executive, Paul Brown-Kenyon, says the Kuala Lumpur-based operator would be happy to consider partnering or joint-venturing with another satellite operator. "Measat is always looking at options to build the business," Brown-Kenyon said earlier this year."Over the last few years we have pursued this through buying additional spacecraft. We have also done this through joint ventures and cooperation with the likes of Thaicom, Azercosmos and Newsat. We are always open to partnerships with operators at a strategic level. We are always evaluating opportunities and if it makes sense, we will consider the opportunity," Brown-Kenyon says.He is enthusiastic about local markets. "DTH has, and will continue to show, phenomenal growth. DTH growth in markets such as Malaysia, India and Indonesia has been constrained recently due to the lack of capacity availability. We see this changing over the next few years with the launch for example of Measat-3b and Measat-3c."Hong Kong-based AsiaSat is ready and willing to engage in expansion via acquisition (or a merger) but the right conditions - economic as well as political - need to be in place.ABS, majority owned by investment fund Permira, is on a fast-track to a global presence, with its new name, offices in Washington DC and in other key locations such as Dubai, Hong Kong, South Africa and Manila (ABS maintains its Master Control in Subic Bay). Youssif says market rumours as to what Permira might or might not do are not new. "We areready for any changes that might happen, but we are not standing idly by. My job is to add new business, and increase our contracted backlog. We have the funding, the satellites, the staff."A newcomer is Christian Patouraux, who has formed Kacific Broadband Satellites, a Singapore-based Ka-band satellite operator backed by seed funding from Soft Venture, Caniwi Capital and others. The intention is to own and operate a hosted high-throughput satellite payload serving the Pacific islands. CapEx and opEx demands are put at about US$200 million. The initial object is to help supply broadband to some "extremely starved" Pacific islands, including Eastern Indonesia, Papua New Guinea and even New Zealand via a series of targeted spot-beams that will "connect the dots" and link these frequently isolated communities with the rest of the world and with one another.Patouraux says the company has identified six potential host satellite projects and discussions are taking place as to which is likely to be the more attractive in terms of timing and position. "All are well-established players," says Patouraux, "but key to us is that we want to own our payload and not simply be leasing capacity." Spoken, indeed, like one of the big boys.The case for ultra-HDThe 4K buzz will eventually translate into enough eyeballs to make it worthwhile, but for the moment, few are holding their breath over the mass take-up of the standard anytime soon in Asia."Though quite a few Asian broadcasters have begun with 4K trials, ultra-HD in Asia will be considered a luxury for quite some time," says AsiaSat chief executive, Bill Wade.Wade points out that even HD adoption has been slow in many developing Asian markets with standard definition still prevalent among terrestrial and pay-TV broadcasters.Intelsat's Terry Bleakley is naturally enthusiastic - but also realistic - about the prospects for thebandwidth-hungry adoption of ultra-HD."While broadcasters and TV manufacturers are turning their attention to U-HD technology, it is important to remember that the transition from SD to HD took almost 10 years," Bleakley says."We don't expect a visible uptake until 2016, when a few linear channels should appear globally. Each channel likely will be made available across a number of DTH platforms, but we don't see 4K becoming the new standard for another 10 years," he adds.What's newABS-2/ST-3... and ABS-6Launched February 2014 to 75 degrees (E). Is ABS' first purpose-built satellite. Possibly most important for boosting ABS global ambitions and presence. ABS-6 is the renamed ABS-1, which shifts to 159 degrees (E) in second half 2014ABS-3ALaunches end 2014ABS-2AScheduled for 2015Measat-3bLaunch delayed from 6 June 2014 to September 2014. A successful launch will mean a lot to channels/programmers for its expansion potential on Malaysia's powerful platform AstroMeasat-3cSecond half 2015AsiaSat-6 & 8Re-scheduled mid/2H-2014 launches after delays at SpaceX.AsiaSat-9 follows in 2017 to 122 degrees (E).SES-9Scheduled for 2015Thaicom-6Launched January 2014Thaicom-7Scheduled 2014