This publication has been discontinued on July 19, 2011.
Abstract
Communication Gap between the U.S. Government and Satellite Industry
Restrains Growth
The U.S. Department of Defense (DOD) is becoming increasingly dependent on
commercial satellite capacity as its demand for satellite communications (satcom)
services is growing faster than its dedicated supply. However, the persisting
lack of dialogue between the government and commercial satellite industry is
resulting in lost opportunities for both. The military is missing an opportunity
to enhance its satcom architecture and lower its costs, while the commercial
satellite operators are missing the chance to further boost their revenues in
the long term. Nevertheless, government and military demand is growing
extraordinarily fast and is likely to continue for the rest of the decade.
This Frost & Sullivan research examines the demand for fixed satellite
services (FSS) in the U.S. military and government sectors. It separately
analyzes demand from the DOD, nonmilitary users, and the civilian government
(including federal, state, and local governments). In addition, the research
discusses technological trends, political dynamics, drivers, restraints, and
other key issues.
DOD becoming more Amenable to using Non-U.S. Satellite Operators?f
Capacity
Some members of the U.S. congress have advocated that the DOD should lease
capacity only from operators located in the U.S. or in countries that are
closely allied to it. However, the fact is that barriers to entry for non-U.S.
satellite operators seeking access to the U.S. military market are lower than
commonly believed. "The DOD is shedding its inhibitions and is increasingly
receptive to leasing satellite capacity from a broad range of operators,"
says the analyst. Market participants – both native and foreign –
must encourage the DOD to take advantage of the benefits offered by commercial
satcom. For this, operators should establish a close relationship with the DOD
as well as with its procurement offices and vendors.
Long-term Contracts – the Key to Streamlining the Procurement
Process
The DOD has sought to reorganize the satellite communications procurement
process by establishing the Defense Information Systems Agency (DISA) – a
sole procurement and capacity issuing authority. However, many users perceive
DISA to be too expensive and slow in distributing satellite capacity. As a
result, many units that have their own resources choose to bypass DISA by
approaching operators and resellers directly. This weakens the DOD?fs ability
to lower prices and to predict its future needs. "The DOD?fs inability to
manage and measure the use of satellite capacity could result in its losing an
opportunity to both enhance its satellite communications network and to lower
its costs for satcom," says the analyst.
By entering into long-term contracts with satellite operators, DOD can
influence commercial fleet design. Operators should assure the U.S. government
that if it agrees to enter into long-term contracts, military requirements will
be taken into consideration when planning the future satellite capacity, orbital
locations, and telemetry, tracking, and control (TT&C) network stations.
Table of Contents
- EXECUTIVE SUMMARY
- Project Scope and Definitions
- Scope of the Study
- Definitions
- Key Findings and Recommendations
- Key Findings
- Recommendations
- MILITARY MARKET
- Introduction
- Military Market Dynamics
- Market Drivers
- Market Restraints
- Other Market Dynamics
- GOVERNMENT MARKET
- Introduction
- Government Market Overview
- Government Market Dynamics
- Market Drivers
- Market Restraints
- MARKET FORECAST
- Market Forecast
- Decicated Military Capacity
- Military Capacity Demanded
- Commercial Capacity
- Military Market Size and Satellite Operator Market Share
- Forecasts for Government and Military Markets
- APPENDIX
- Frequency Band Nomenclature - Methodology - Acronyms
- Military versus Commercial Frequency Band Nomenclature
- Methodology
- Glossary of Acronyms
