The 13 commercial
satellite-fleet operators active in the Middle East and North Africa showed a
73 percent fill rate on their 41 Ku-band satellites in mid-2008 when measured
in booked megahertz compared to total megahertz of capacity, according to a
mid-2008 survey of capacity taken from Dubai, United Arab Emirates, by the
London Satellite Exchange (LSE) and Euroconsult. The satellites were spread
over 31 orbital slots.
The Ku-band fill rate
jumps to 97 percent if the measure is made in the less-precise count of
transponders used versus transponders unused, because some transponders are
booked only partially, the survey found.
The survey is the latest
confirmation that the region
is among the world's most dynamic, and it explains why operators without
satellites in the region want to get in there, and those already there are
planning new capacity.
Transponder demand
has risen at a rate of 12 percent per year during the last five years, with
most of the new capacity in Ku-band. Commercial satellite-lease revenues have
grown by 17 percent per year on average since 2003, reaching $752 million in
2007, according to Euroconsult estimates.
Not all operators are
sharing the benefits, in part because fill rates are a function of the uses to which satellites are
put.
A company focused on
satellite television, such as Nilesat of Egypt, is booked solid on its two
satellites, both in terms of available megahertz and available transponders.
Television broadcasters typically lease entire transponders in multiyear
contracts. Nilesat recently ordered a new satellite, to be launched at the
company's 7 degrees west orbital slot in early 2010.
But television and radio
broadcasts represented just 42 percent of the uses to which the observed
satellites were put when LSE measured demand from Dubai in mid-2008.
A majority of the
satellite capacity in the region was devoted to voice and data traffic, whose
customers tend to sign shorter-term contracts, often for partial transponders.
This gives their fill rates a higher volatility. LSE and Euroconsult said in
their survey, "Ku-Band Loading Report: Middle East and North Africa," that
for these applications any snapshot of demand may be less reliable.
Also distorting the
figures is the fact that some operators purposely take transponders out of
service as they await the arrival of a large customer that has reserved the
capacity but not yet taken up residence. Such a transponder would appear as "unused"
in the LSE and Euroconsult survey.
Russian Satellite
Communications Co. of Moscow, for example, showed a 100 percent fill rate for
the transponders on the three satellites it has over the region, but just a 52
percent fill rate when measured in booked versus available megahertz.
"The Russian
operator used 81 percent of its capacity for voice and data traffic, which is
generally more volatile than broadcasting applications," LSE and Euroconsult
said in the report. "Thus the fill rate measured for the study as of
mid-2008 might be underestimated as compared to the average yearly value."
With 14 satellites
carrying more than 475 transponders over the region, Eutelsat of Paris is the
region's biggest player, providing half the bandwidth available in the region.
But Eutelsat shows an average fill rate of 72 percent for the 14 satellites it
operates in the region.
Among Eutelsat's
satellites, its Atlantic Bird and "W" series satellites, which include
voice and data traffic, are less full than the company's Hot Bird series of
direct-broadcast television spacecraft at 13 degrees east longitude, which are
full and are Eutelsat's prime source of revenue.
Eutelsat, which is in the
midst of an unprecedented fleet-expansion program, plans to launch five more
satellites with footprints over the Middle East in the next 24 months: Hot Bird
9 and Hot Bird 10, both to operate from 13 degrees east; W2A, to be located at
10 degrees east; W2M, for 16 degrees east; and W3B, for 7 degrees east.
The company with the
biggest near-term development plans in the region, after Eutelsat, is the
Arabsat consortium of Riyadh, Saudi Arabia, which has announced plans to launch
one satellite per year, on average, for the next four years. Arabsat was
reported to have a fill rate of 64 percent in terms of megahertz occupancy, and
89 percent when measured in transponders that are at least partially occupied.
In terms of satellites
now in service, the second-largest operator in the Middle East and North Africa
is Intelsat of Bermuda and Washington, which has 11 satellites and 144
transponders capable of transmitting to the Middle East.
The Dubai-based measure
of occupancy showed Intelsat's satellites 73 percent full on average when
measured in megahertz, and 98 percent full when measured in transponders.