Press release
New report highlights growth opportunities in Mobile Satellite
Services and challenges for equipment manufacturers, distributors
MENLO PARK, Calif., Jul. 9 /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 terminal equipment market for the leading MSS
systems, forecasting growth in manufacturers’ revenues from $493M in
2006 to $740M in 2012. The future market opportunity for Stratos is also
assessed, and the impact of new, lower margin, Inmarsat services
quantified. In addition, the report discusses the implications of TerreStar’s
recently announced launch delay and analyzes the capabilities of
Inmarsat’s new handheld services, as well as current trends in MSS voice
pricing.

Tim Farrar, author of the research, commented "The MSS equipment
market is healthy, but the largest growth will come in handheld equipment,
where terrestrial cellphone manufacturers may compete for new orders.
As a result, traditional MSS equipment vendors such as Thrane & Thrane
will need to exploit other niches, in order to grow their revenues in the
future. MSS distributors also face pressures in the medium term, as their
margins on Inmarsat services decline and new distribution channels are
opened up. Unless they can realize significant growth in other areas,
distributors such as Stratos may be faced with the prospect of revenue
declines beyond 2010, as Inmarsat customers migrate to new lower
margin services.

"Our analysis of MSS handheld tariffs concludes that contrary to some
expectations, average price levels for many voice users actually increased
during 2006, as operators sought to maximize their overall revenue yield.
In our view, recent price cuts are largely a response to specific
competitive situations, such as Inmarsat’s entry into the market, and MSS
voice pricing will remain essentially disconnected from terrestrial wireless
price trends for the foreseeable future."

The report forms part of TMF Associates’ information service on Mobile
Satellite Services. 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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