Thor III to open new frontiers
Fornebu
6 minute read
Scheduled for launch on 9 June, Telenor's newest broadcasting satellite THOR III is expected to open market frontiers for Telenor Satellite's media operations when it begins transmitting in early August 1998.
The new satellite will deployed at the 1°West position, together with Telenor's THOR 1, THOR II and TVSAT satellites, as well as the company's leased capacity on the INTELSAT 707. The 100 television channels and 25 radio stations broadcasting from 1° West are monitored from the Nittedal Earth Station north of Oslo. Telenor has satellite uplinks in an additional eight countries.
"Among the first broadcasters moving onto THOR III are Sky and Viasat, who will be broadcasting in analogue format. Telenor already has contracts or fairly high probability prospects for filling 50 percent of THOR III within 1998," says Kjell Løvbakken, who heads the media section of Telenor Satellite's broadcasting divison.
"The major difference between THOR II and III," he says, "is their broadcast radius (footprint). THOR III's stronger signal reaches a total of 18 European countries, extending the 1° West coverage area much further into central and eastern Europe."
Løvbakken says some of THOR III's capacity will be occupied by broadcasters transferring over from the older Telenor satellite TVSAT, which will be phased out later this year. Another small portion will be used for new digital services to the Nordic market like home shopping, video-on-demand, turbo internet access and business television.
"However," Løvbakken says, "Telenor expects that much of THOR III's capacity will eventually be dedicated to new business in countries like Poland, Hungary, Slovakia and the Czech Republic. Unlike the Nordic market, which was mature when THOR II was launched, satellite television in eastern Europe is just developing. Yet while the demand for more programming in these countries is high, viewer incomes are relatively low. Broadcasting and distribution infrastructure are in their infancy, so market penetration takes time. But digital technology makes the going easier," says Løvbakken, pointing to the example of Slovakia. Telenor's satellites serve more than 3.5 million Slovak television viewers and radio listeners.
"Slovakia's public broadcasting company STV recently booked capacity at 1° West for the launch of a new digital channel. It was important for them to reach as many viewers as possible in as short a timeframe as possible at a reasonable price. Satellite broadcasting is more cost-effective than the investment in improving existing terrestial equipment," Løvbakken says.
He believes the potential in the eastern European market has also not escaped the attention of competitors, but says he believes that Telenor has two major advantages. "The first is experience and expertise. We have 25 years experience in satellite broadcasting and can offer a one-stop-shopping concept in terms of technical expertise. Within the Telenor group, we can provide not only satellite transmission, but also expertise in broadcasting infrastructure for technology like fixed and mobile uplinks for local broadcasters, encryptation, and smart card systems. We also have cooperations with local partners who are helping us build up satellite service providers. Most of our competitors offer only satellite capacity."
"Telenor's other advantage is in its marketing approach," says Løvbakken. "We use a bundling concept where we put together a tailor-made package of channels for each country. This includes the major local language broadcasters and a selection of the pan-European channels with whom we have well-established working relationships from Scandinavia," Ãvbakken says.
The largest business entity under the Telenor International umbrella, Telenor Satellite has an annual turnover in excess of USD 230 million and 350 employees. The company has offices in seven countries and representatives in another seven.
While they receive the most media attention, broadcasting activities represent in fact only half of Telenor Satellite's annual income. The company's second largest income generator is mobile communication over Inmarsat from ships, airplanes and personal satellite phones. VSAT business networks, including Internet backbone access and remote telecom gateways, are a small but growing business segment. While most of THOR III will be occupied by television and radio broadcasters, Løvbakken says some capacity may be used for business networks.
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"Among the first broadcasters moving onto THOR III are Sky and Viasat, who will be broadcasting in analogue format. Telenor already has contracts or fairly high probability prospects for filling 50 percent of THOR III within 1998," says Kjell Løvbakken, who heads the media section of Telenor Satellite's broadcasting divison.
"The major difference between THOR II and III," he says, "is their broadcast radius (footprint). THOR III's stronger signal reaches a total of 18 European countries, extending the 1° West coverage area much further into central and eastern Europe."
Løvbakken says some of THOR III's capacity will be occupied by broadcasters transferring over from the older Telenor satellite TVSAT, which will be phased out later this year. Another small portion will be used for new digital services to the Nordic market like home shopping, video-on-demand, turbo internet access and business television.
"However," Løvbakken says, "Telenor expects that much of THOR III's capacity will eventually be dedicated to new business in countries like Poland, Hungary, Slovakia and the Czech Republic. Unlike the Nordic market, which was mature when THOR II was launched, satellite television in eastern Europe is just developing. Yet while the demand for more programming in these countries is high, viewer incomes are relatively low. Broadcasting and distribution infrastructure are in their infancy, so market penetration takes time. But digital technology makes the going easier," says Løvbakken, pointing to the example of Slovakia. Telenor's satellites serve more than 3.5 million Slovak television viewers and radio listeners.
"Slovakia's public broadcasting company STV recently booked capacity at 1° West for the launch of a new digital channel. It was important for them to reach as many viewers as possible in as short a timeframe as possible at a reasonable price. Satellite broadcasting is more cost-effective than the investment in improving existing terrestial equipment," Løvbakken says.
He believes the potential in the eastern European market has also not escaped the attention of competitors, but says he believes that Telenor has two major advantages. "The first is experience and expertise. We have 25 years experience in satellite broadcasting and can offer a one-stop-shopping concept in terms of technical expertise. Within the Telenor group, we can provide not only satellite transmission, but also expertise in broadcasting infrastructure for technology like fixed and mobile uplinks for local broadcasters, encryptation, and smart card systems. We also have cooperations with local partners who are helping us build up satellite service providers. Most of our competitors offer only satellite capacity."
"Telenor's other advantage is in its marketing approach," says Løvbakken. "We use a bundling concept where we put together a tailor-made package of channels for each country. This includes the major local language broadcasters and a selection of the pan-European channels with whom we have well-established working relationships from Scandinavia," Ãvbakken says.
The largest business entity under the Telenor International umbrella, Telenor Satellite has an annual turnover in excess of USD 230 million and 350 employees. The company has offices in seven countries and representatives in another seven.
While they receive the most media attention, broadcasting activities represent in fact only half of Telenor Satellite's annual income. The company's second largest income generator is mobile communication over Inmarsat from ships, airplanes and personal satellite phones. VSAT business networks, including Internet backbone access and remote telecom gateways, are a small but growing business segment. While most of THOR III will be occupied by television and radio broadcasters, Løvbakken says some capacity may be used for business networks.
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