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2003 “State of the Satellite Industry” Report Released

Alexandria, Va., June 4, 2004 – The Satellite Industry Association (SIA), in cooperation with the Satellite Broadcasting & Communications Association (SBCA) and the Global VSAT Forum (GVF), released its 2003 “State of The Satellite Industry” report at the International Satellite and Communications Conference and Exposition (ISCe) in Long Beach, Calif. last week. SIA reported $91 billion in total worldwide revenue in 2003 for the commercial satellite industry - an increase of nearly six percent over 2002.

The analysis was preformed by Futron Corporation and included information based on employment, revenue, and other relevant information from large companies in the satellite services; launch services; satellite manufacturers; and ground equipment manufacturing sectors.

“Much of this year’s growth is due to substantial increases in government and military spending on fixed and mobile satellite services,” stated David Cavossa, acting executive director of SIA. “This, plus strong growth in consumer satellite service revenues offset losses in other sectors hindered by overcapacity.”

In 2003, subscription and retail services drove overall growth, increasing 15 percent overall, satellite radio revenue growth increased over 400 percent. This sector has more than tripled in size from 1996 to 2003. Global launch revenue declined in 2003. However, US launch industry revenues more than doubled due to increases in the number of launches for US government customers - capturing more than 65 percent of total launch revenues. Global satellite manufacturing revenues dropped by 19 percent, while US satellite manufacturing revenues grew by five percent.

“Consumer focused satellite services continued to drive growth in 2003. Today one in every 5 households in America is a satellite user and this trend is being replicated around the world. Satellite radio is also a huge success and may eventually be even bigger than the satellite television marketplace. The tremendous and sustained growth in consumer satellite services is drives demand for satellite manufacturers and ground systems,” said Richard DalBello, president SBCA.

"The statistics revealed by this Survey are supported by additional market intelligence we receive from throughout the world," said David Hartshorn, secretary general of the GVF. "While the satellite industry is still fighting its way out of the telecom downturn, companies from every major region and across each sector - including operators, manufacturers, teleports, value-added resellers, carriers and others - are reporting to us that the business is improving. As Satcom costs continue to decline and gains in deregulation continue to be realized, we project a continuation of this promising trend." 

The Satellite Industry Association is a U.S. trade association representing the world’s leading satellite manufacturers, service providers, ground equipment suppliers, and launch service companies. SIA serves as an advocate for the commercial satellite industry on regulatory and policy issues common to its members. With member companies providing a broad range of manufactured products and services throughout the world, SIA represents the unified voice of the commercial satellite industry.

The Satellite Broadcasting and Communications Association is the national trade organization committed to expanding the utilization of satellite technology for the broadcast delivery of video, audio, data, music, voice, interactive, and broadband services. SBCA is composed of DBS, C-band, broadband, satellite radio, and other satellite service providers, content providers, equipment manufacturers, distributors, retailers, encryption vendors, and national and regional distribution companies that make up the satellite services industry.

The Global VSAT Forum is the non-profit association of the global satellite communications sector. With more than 170 members in 70 countries, the GVF conducts promotions, training, and advocacy to facilitate the provision of satellite systems and services in every region of the world.

Media Note: Copy of presentation and statistics available at or upon request.