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Industry News

US Military and Government Demand for Global Satellite Communications Rising

August 15, 2004
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Since the events of September 11, satellite operators have experienced a significant increase in US military and government demand for commercial satellite communications. A new study from Frost & Sullivan, “US Military and Government Demand for Global Satellite Communications,” demonstrates that revenues from US military users of satellite communications will increase rapidly throughout the remainder of the decade. Moreover, though industry participants fear that military demand would be short-lived, the study shows how solid and enduring growth drivers are fueling demand. The study estimates current revenues from combined US military and US civilian government commercial leasing at $423 M and projects growth to $925 M by 2009. The study illustrates how this lack of communications could cause satellite operators to lose potential revenue from military and government sales and could cause the government to lose the opportunity to at once lower its cost for satellite communications procurement and improve its access to satellite communications resources. The study explains how longer-term contracts for satellite capacity procurement would enable DOD to lower costs and improve its management of satellite communications use. The “US Military and Government Demand for Global Satellite Communications” study is part of the Space and Communications Group Subscription, which also includes market insights on satellite operators, satellite broadband, Ka-band technology and global transponder leasing.

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