China seeks to boost share in international satellite market

[Safriz]

China is actively
exploring commercial
opportunities to boost
its share of the global
satellite-launching
market, in an attempt to
challenge US and
European dominance of
this field.
China Great Wall
Industry Corp, a subsidiary of China Aerospace
Science and Technology Corp, is using this year's
Paris Air Show to showcase its next generation of
heavy-lifting rocket, the Long March 5, which is
expected to be first launched in 2015.
China Great Wall, the country's sole commercial
provider of international launch services and
satellite in-orbit delivery, is also using the event to
demonstrate its Long March family of rockets,
communication satellite platforms, and remote-
sensing and meteorological satellites in the hope of
attracting more potential international business,
said Zhou Yuanying, the deputy general manager of
the company's launch service division.
China launched 19 satellites last year, more than
the US did for the first time.
The country aims to increase its market share in
the global satellite-launching business to 15
percent by 2020, according to report of Xinhua
News Agency. It currently has about 3 percent
market share and its main clients are countries from
Asia, Latin American and Africa.
Since 2005, China has launched satellites for
Nigeria, Venezuela, and Pakistan, and in April
added Turkey, Argentina and Ecuador to its
international roll call of clients, after sending three
more satellites into orbit.
Zhou said that China is basing its offering on a
combination of high reliability and reasonable cost,
but she admitted that it faces major obstacles in
entering the US and European markets.
The US, for instance, has banned the export and
transfer of satellites to China as well as the
launching of satellites with US components in
China, and analysts say the restrictions have
helped reinforce the US' dominance of the sector.
The US generated revenue of $1.9 billion from
launching services in 2011, accounting for 39
percent of the global market share, according to a
report by the US Satellite Industry Association.
Europe accounted for 25 percent while Russia had
19 percent of the market.
Zhou said China is looking for ways to compensate
for the market restrictions by seeking opportunities
in satellite leasing and cooperation with the
world's leading satellite operators, such as
European companies SES SA and Intelsat SA.
China has already leased its commercial satellite
Apstar-7 to the US Defense Department for control
of the communications of its Africa command, and
the Pentagon recently extended a $10.7 million
leasing contract with China.
China Great Wall is also promoting the applications
of the Beidou satellite navigation system, an
alternative to the US Global Positioning System, to
international clients.
China plans to invest 7 billion yuan ($1.13 billion)
to further develop the system, which began to
provide services for clients in the Asia-Pacific
region in December 2012, according to media
reports. The system is expected to serve global
customers in 2020.
Source: Xinhua News Agency