(22 May 2009 8:15 pm)

MUMBAI: With revenue from transponder leasing in the region remaining strong even as other sectors of the world's economy have withered, satellite operators doing business in Asia are thriving despite the global recession.

The commercial communications satellite industry's most important drivers, including DTH television and intercontinental video transmissions, remain in growth mode because of the continued strong demand in Asia for these services.

In addition, the multi-year contracts satellite operators often sign with their customers are enabling the industry to maintain a dependable revenue stream despite the turmoil in the world economy.

Customers who depend on satellite links to run their businesses cannot afford to let those arrangements deteriorate, so they are likely to continue to make paying satellite providers a top priority, say analysts.

"The industry hit the economic crisis in about the best possible position they could be in," says Singapore-based Northern Sky Research senior analyst Patrick French. "Transponder fill rates are generally high, the industry has somewhat consolidated and companies are going into this strong."

Asia is also benefiting because investors see its markets as being stronger than those in North America or Europe where the economic crisis is having a greater impact, says Brown-Kenyon.