Inmarsat looks to the future

Mobile satellite service provider Inmarsat saw sales dip at its maritime operation as customers there continued to migrate to the group's next generation broadband terminal, Fleetbroadband. This, combined with falling military usage in Afghanistan, prompted chief executive Rupert Pearce to caution that mobile satellite services growth will be no more than 2 per cent in the near term – although that's expected to rise to 8-12 per cent from 2014, as the group's super-fast broadband Global Xpress offering comes on stream.

With more mariners using cheaper data services, rather than expensive voice calls, maritime voice sales fell 8.1 per cent in 2011 to $90.2m (£57.3m). Growing data usage, largely from the new Fleetbroadband terminal, helped offset this, though. Indeed, Inmarsat added 9,818 new terminals in the year, and total maritime revenues slipped just 0.5 per cent to $358.9m. However, although reduced military usage in Afghanistan was partly offset by increased satellite phone usage in Japan following the earthquake there, and in North Africa, overall land mobile services sales still fell 1.3 per cent to $151.7m.

Meanwhile, the collaboration with US 4G operator LightSquared has turned sour after it failed to gain US regulatory approval. In fact, LightSquared owes Inmarsat $56.3m, reflecting contractual milestones.

visible-status-Standard story-url-result_INMARSAT_060312.xml