Press release
Mobile Satellite Services Could Capture 16 Million Users by 2015,
via Partnerships with Satellite TV Operators and Others
MENLO PARK, Calif., Feb. 2 /PRNewswire/ -- A new report from
Telecom, Media and Finance Associates, Inc. (TMF Associates), "ATC:
The Future of Mobile Satellite Services?" concludes that a partnership
between a Mobile Satellite Services (MSS) operator and a Satellite TV
operator could provide spectrum and funding for deployment of a new
nationwide 4G wireless network in the US by 2010. Using WiMAX or
similar technologies, such a network could provide both fixed and mobile
voice and data services to a total of 13.5M terrestrial and 2.5M satellite
users by 2015, generating annual service revenues of US$5.3B.

Tim Farrar, author of the report, commented "Over the last five years, the
FCC has moved to permit use of MSS spectrum for integrated satellite-
terrestrial services. Deployment of terrestrial base stations, known as
Ancillary Terrestrial Components or ATC, will enable MSS operators to
provide service in urban areas and inside buildings which satellite signals
are too weak to penetrate. New, more advanced satellites will also allow
customers to use small, low cost handsets for mobile services. However,
MSS operators will need to partner with larger players, both to fund the
US$3B+ projected cost of terrestrial base station deployment and to
secure adequate mass-market distribution channels. We believe that the
optimum partner would be a satellite TV operator such as DirecTV or
Echostar, because of their compelling need to develop new wireless and
broadband service offerings, and the shortage of alternative spectrum
options for deploying a nationwide wireless network. Another option
would be partnering with satellite radio providers such as XM Satellite
Radio or Sirius Satellite Radio to provide capacity for mobile video and
telematics services. There are currently five proposed MSS-ATC
systems, from MSV, Terrestar, ICO, Inmarsat and Globalstar. However,
there won’t be enough partners for all of these companies to successfully
deploy their own national terrestrial network."

The report provides operators, policy makers, researchers and analysts
with an overview of ATC. It discusses the regulatory environment and
analyzes the technical limitations of mobile satellite services. The report
examines a range of possible partners for MSS operators, and provides
ten year market forecasts of take-up and revenues for potential
partnerships with cellular operators, satellite TV operators, ISPs and
satellite radio providers. In addition, it gives forecasts for other sources
of MSS market growth in the US, including the use of MSS as a backup
solution by first responders and emergency workers, and the expanding
use of MSS-based asset tracking solutions within the transportation sector.
Conclusions are drawn about the relative advantages and disadvantages
of the various proposed MSS-ATC systems and the implications for each
MSS operator.

For more information about the report, see

TMF Associates, headquartered in Menlo Park, California, is a leading
consulting firm providing business and technical analysis in satellite,
wireless and broadband telecommunications. For additional information,
please visit

CONTACT:  Tim Farrar, President
Telecom, Media and Finance Associates, Inc.
650-839-0376 or
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