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News & Press: Press Release

World Teleport Association Publishes New Report on the Changing Landscape of the Teleport Sector

Wednesday, October 15, 2008   (0 Comments)
Posted by: Randall Barney
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WTA Press Releases


Report provides outlook of teleport sector as viewed by senior executives in WTA member companies

(New York City, October 15, 2008) -- World Teleport Association (WTA) announced today the publication of a new report, New Markets, New Services, New Competition addressing the changing applications, technologies and competitive dynamics of the global teleport sector. For the report, WTA surveyed senior executives of companies at the core of its membership – teleport operators delivering customized communications services in highly competitive markets using local, ground-based infrastructure.

Changing Priorities

The report highlights the diversity of income sources that teleport operators currently tap with the largest portion coming from media and entertainment at 35 percent, on average. But, surprisingly, as many respondents ranked mobile telephone backhaul as a high-priority market as they did for the traditional business of television/radio contribution and distribution.

"The teleport sector was once the creature of the broadcast industry, deriving at least 90 percent of its revenues from television program contribution and distribution,” said Robert Bell, WTA Executive Director and the author of the report. "The survey results clearly indicate the importance of mobile backhaul as one of the fastest-growing lines of business for many operators and the changing landscape of the teleport sector."

Another key change in recent years is the growth of non-transmission services in the mix. More than half of operators provide their customers with systems design, engineering and integration services, conditional access services, as well as video or audio production and post-production. Yet transmission services remain at the core of operations, with 100% of respondents providing satellite and 76% providing fiber transmission. Twenty-three percent reported that they were already deploying WiFi, WiMax and other wireless solutions for last-mile connectivity.

Changing Dynamics

As teleport operators add services to their portfolio and both satellite carriers and integrators develop and operate their own teleports, the lines between sectors is beginning to blur. The survey report explores both the levels of current competition between teleport operators, carriers and integrators, and the perceived degree of threat in the future. The survey reveals that overlapping business growth opportunities are putting teleport operators and satellite carriers into competition for the first time, and suggests that the means they find to manage this commercial tension will help determine their future success.

"We've seen significant changes in the industry over the past few years as operators and carriers begin to play in the same sand box," added Bell. "Independent operators, however, have proven their adaptability by creating diverse businesses serving a broad range of customers. Through open dialogue and exploring issues and opportunities, there should be little doubt that the teleport sector will continue to thrive."

The report is available free to WTA members from the World Teleport Association Web site on the
Research & White Papers page. Non-members may purchase a copy of the report from the online store. WTA will provide a free copy of the report to accredited members of the press.

 

About World Teleport Association

Since 1985, the World Teleport Association (
www.worldteleport.org) has been the only trade association that focuses on the business of satellite communications from the ground up. At the core of its membership are the world's most innovative operators of teleports, from independents to multinationals, niche service providers to global hybrid carriers. WTA is dedicated to helping teleport operators to improve their operations, develop their markets and grow their businesses within the $13 billion teleport sector of the global satellite industry. Companies that do business with teleports also find that WTA is the best investment they can make to open new channels to the industry.


World Teleport Association
55 Broad Street, 14th Floor, New York, NY 10004 USA
+1 212-825-0218 fax +1 212-825-0075
www.worldteleport.org


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