Menasa growth fuels mobile satellite demand

Development projects initiated by the private and public sectors in the Middle East, North Africa and South Asia (Menasa) region have been stimulating demand for mobile satellite communications, says a top executive of satellite services provider Inmarsat.

Perry Melton, chief operating officer of the UK-based Inmarsat, is bullish about the Menasa market as he disclosed that their Indian Ocean satellite, which covers the region, has been comfortably posting the strongest traffic among their global networks.

With some parts of the region still lacking in sophisticated infrastructure, governments and industries have been turning to satellites to complement terrestrial communications services whether fixed line or mobile, says Melton. This demand has further boosted the company’s recent financial performance.

“Even during the recessionary period, we were having double-digit growth year-on-year and I think this, in part, is due to the type of services that we provide, which meets the needs of different sectors such as maritime, government, aviation, media, energy and mining,” he said.

Speaking at the sidelines of this week’s Gitex exhibition, Melton told Alrroya.com that their global earnings for the first half of this year reached $571 million (Dh2.1 billion), up by a significant 12.2 per cent compared with the $508.7m recorded in the first six months of 2009.

In the past five years, Inmarsat – which is currently operating 11 satellites – has heavily invested in developing its broadband global area network (BGAN) technology that makes communications possible even in remote land areas. The “BGAN Family” also consists of other services such as FleetBroadband for use by the maritime industry and SwiftBroadband for the aeronautical sector.

Melton attributed the increased investment in broadband capability to their corporate and government clientele’s similarly growing need for higher-speed data services and standard IP- (internet protocol) type solutions.

“[The Inmarsat services] all had significant takeup because customers are looking for greater capability and more cost-effective services,” he said.

The company, which delivers its services through over 400 telecom service providers in 100 countries, will also launch in 2014 its new Ka-band satellites. Once operational, these satellites will further boost Inmarsat’s capability, allowing them to offer higher bandwidth services at a lower cost.

“This will also provide us with a growth path for existing and new customers because we would be able to access certain market segments that we can’t reach with our current services,” Melton said.

At Gitex, Inmarsat also launched their latest handheld Isat Phone Pro, which is expected to offer high-quality satellite telephony, text and email messaging. Melton said the handset had a battery life of up to eight hours talk time and 100 hours standby time, the longest in its range.

The Isat Phone Pro will be sold in the Middle East at an estimated retail price of $699 and is targeting professional users in the government, media, oil and gas, aid, mining and construction sectors.