Press release
Maritime and aeronautical broadband will drive growth in Mobile
Satellite Services, new report claims
MENLO PARK, Calif., Apr.1. /PRNewswire/ -- Telecom, Media and
Finance Associates, Inc. (TMF Associates), the specialist Mobile Satellite
Services (MSS) consulting firm, today released its latest research report
on developments in the mobile satellite market.

The report analyzes the aeronautical communications market and projects
that service revenues will grow from $120M in 2007 to $640M in 2013,
driven by continued strength in the business jet market and steady growth
in usage of new in-flight passenger communication technologies. The
report also examines the opportunity for maritime broadband providers,
predicting a near doubling of revenues for MSS and VSAT services from
$530M in 2007 to $980M in 2013. In addition, the report discusses the
slowdown in the MSS handheld market and the difficulties experienced
by mobile TV providers, as well as the outcome of the recent 700MHz
spectrum auction.

Tim Farrar, author of the research, commented “It is becoming
increasingly clear that MSS operators must look to maritime and
aeronautical broadband markets to drive their future growth. The
handheld MSS market has continued to shrink in 2007 and with recent
delays in the launch of new service offerings, any recovery may not come
until 2009 at best. While new VSAT offerings will compete strongly for
market share in both the maritime and aeronautical sectors, we forecast
continued growth for L-band services despite the difficult economic
climate.

“However, we do not expect services supporting in-flight mobile phone
use for airline passengers to achieve the success that some providers
project. We believe that airlines must view connectivity primarily as a
service differentiator to enhance passengers’ travel experience, and those
airlines expecting to make a profit from such services will be disappointed.
This is particularly true in Europe, where recent reductions in mobile
roaming charges and the relatively short flights, combined with the
potential for a passenger backlash, will limit usage.

“We also advise MSS operators to focus on developing their core satellite
business and on countering the increasing challenges from VSAT. Recent
disappointments in the mobile TV market in Korea make us increasingly
cautious about the prospects for new services where the satellite
component serves only to secure the rights to spectrum, rather than
providing a key element of the end user experience, and may have serious
repercussions for the upcoming 2GHz MSS spectrum allocation process
in Europe.”

The report forms part of TMF Associates’ information service on Mobile
Satellite Services. Subscribers include many leading satellite operators,
equipment manufacturers, distributors and investors in the sector.
More details are available at
http://www.tmfassociates.com/reports.

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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