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New Markets, New Services, New Competition

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WTA's new report, New Markets, New Services, New Competition, addresses 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.

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.

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% o respondents providing satellite and 76% roviding fiber transmission.  Twenty-three percent reported that they were already deploying WiFi, WiMax and other wireless solutions for last-mile connectivity.

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.

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