Press release
Globalstar and Orbcomm IPOs highlight re-emergence of Mobile
Satellite Services and need for detailed examination of market
potential
MENLO PARK, Calif., Nov. 7 /PRNewswire/ -- Telecom, Media and
Finance Associates, Inc. (TMF Associates), the specialist Mobile Satellite
Services consulting firm, today released its regular market analysis of events in
the mobile satellite sector. Last week both Globalstar and Orbcomm
conducted IPOs, highlighting the re-emergence of the sector as a major focus
for investors and suppliers. Other events included the announcement of a joint
venture between SES and Eutelsat to bring mobile satellite broadcasting to
Europe.

The report analyzes growth prospects for the handheld MSS market, the
outlook for Inmarsat’s new BGAN product, and how the distribution models
for MSS may change following the consolidation of major Inmarsat
distributors. In addition, the report provides new estimates for MSS spectrum
valuations based on the FCC’s recent AWS auction.

The firm also updated its subscriber and revenue projections for Inmarsat,
incorporating the latest developments in the BGAN and handheld MSS
markets.

Tim Farrar, author of the research, commented "The very different outcomes
of the Globalstar and Orbcomm IPOs have confirmed our previously
published analyses which were positive about the potential of the handheld
MSS market, but cautious on the prospects for Orbcomm’s IPO. Our new
report gives additional details on the prospects for handheld services and also
analyzes the opportunity for Inmarsat’s new BGAN service. Initial BGAN
sales appear to be relatively modest, confirming our view that this will not
represent a major step-change in Inmarsat’s land mobile revenues. However,
we are more bullish on the opportunity for Inmarsat’s maritime and
aeronautical data services, where we expect BGAN to reinforce recent strong
growth. In the handheld market, we expect the introduction of new, smaller
handsets from Thuraya and Globalstar, and the forthcoming launch of new
North American mobile satellite systems, to lead to a near doubling of
handheld MSS subscribers and revenues over the next five years.

"MSS operators may also benefit from the recently announced Eutelsat-SES
mobile broadcasting deal, since it will increase the probability of hybrid
satellite-terrestrial networks being permitted in Europe. Eutelsat’s intention to
support two-way services could lead eventually to use of MSS spectrum for
cellular-like terrestrial services, and thereby increase the potential value of
MSS spectrum enormously, as has already happened in North America."

The report and market projections form part of TMF Associates’ recently
launched information service on the Mobile Satellite Services (MSS) sector.
More details are available at
http://www.tmfassociates.com/reports. Previous
analyses may be downloaded from
http://www.tmfassociates.com/articles.

TMF Associates, headquartered in Menlo Park, California, is a leading
consulting and research firm providing business and technical analysis in
satellite, wireless and broadband telecommunications. The firm specializes in
Mobile Satellite Services (MSS), including Ancillary Terrestrial Component
(ATC) technology, and works with operators, investors and equipment
manufacturers to analyze complex market issues. For additional information,
please visit
http://www.tmfassociates.com.

CONTACT:  Tim Farrar, President
Telecom, Media and Finance Associates, Inc.
650-839-0376 or tim.farrar@tmfassociates.com
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