Derek Woods News

The competitive satellite communications market has taken an additional step toward consolidation, with Station 12 — an independent operating business owned 65 percent by KPN (Royal Dutch Telecom) and 35 percent by Telstra — leading the way having the intention of cornering the market. Station 12 recently outlined its strategy to double its size in the next three years, both through organic growth and acquisitions. Station 12 already claims to have 24 percent of the competitive Inmarsat maritime and mobile satellite communications sector, with current annual sales of $215 million. This is expected to rise to $500 million by 2003. The company is the largest customer and shareholder in Inmarsat, the leading provider of wholesale satellite airtime.

The satellite communications sector of the marine market has not been immune from the corporate consolidations that have swept all other corners of the industry, and while this particular niche has been widely regarded as fragmented, it is yet to be seen what the end effect will be for the communication users. However, it can be assumed that competition is still keen, and the name of the communication game continues to center on quality, reliability and capabilities. With an increasing emphasis on the transmission of data rather than traditional voice or fax, it can be assumed that continued efforts will center on widening the information "pipeline" between vessel and shore.

Stratos Global Corporation has entered into a definitive agreement to acquire Shell Offshore Inc.'s telecommunications subsidiary, Shell Offshore Services Company (SOSCo). The transaction is subject to regulatory approvals and customary closing conditions. "The acquisition of SOSCo is consistent with Stratos' long-term strategy of providing communications solutions to high volume industrial customers operating in remote locations," explains Derek Woods, president and CEO of Stratos. Based in New Orleans, SOSCo uses a state-of-the-art digital microwave system to provide voice, data and video services, Internet access and network connectivity to more than 250 remote drilling rigs and production platforms located offshore in the Gulf of Mexico.