The European Tactical Communication Market Will Remain Buoyant Despite Current Economic Climate, Notes Frost & Sullivan

LONDON, March 23, 2010 - Despite the economic downturn, the European tactical communications
market will remain stable and is poised to earn revenues of US$1.58 billion
by 2018. The regional defence communication market will grow steadily because
many European Ministries of Defence (MODs), increasingly cognizant of
networked communication as a force multiplier, have been actively upgrading
tactical communication (TACCOM) capability.

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New analysis from Frost & Sullivan (www.aerospace.frost.com),
European Tactical Communication Market Assessment, finds that market earned
revenues of US$1.06 billion in 2008 and estimates this to grow at a compound
annual growth rate (CAGR) of 4.1 per cent between 2008 and 2018, to reach
US$1.58 billion. This significant increase in revenue can be attributed to
rising demand for networked communication largely driven by software-defined
radio (SDR) technology that enables radios to integrate with more capable
satellite communications (SATCOM) terminals.

"Radio technology closes in towards networked communication capability
through high capacity data radio (HCDR)," says Frost & Sullivan Research
Analyst Maj. Sabbir Ahmed (retd.) "Products such as high band networking
radio, software defined personal role radio, and tactical network (TacNet)
solutions are likely to drive a transformational shift in the TACCOM
landscape."

These products set up TacNet architecture in the theatre of operation,
where all radio sets including vehicular and airborne as well as SATCOM
terminals are used as nodes. The network also integrates existing command and
control (C2)/battle management systems (BMS), and air defence communication
systems into a single IP environment enabling seamless transmission of voice,
data, and video contents from decision centres to the last tactical mile.

SDR technology is enabling the integration of tactical communication and
elements of situational awareness at the soldier level. This means that
navigation, imagery, and identification sensors are increasingly incorporated
into soldier communication gear, blurring the boundary between tactical
communication, navigation, and sensors at the frontline. Such integration
will enable war fighters down to section level to be well-informed, and
reduce sensors to decision-makers to shooters lag through a continuous feed
of battle intelligence.

However, the integration of varied legacy radio systems is a challenge
for this market. Market participants are looking at projects like the joint
tactical radio system (JTRS) in the United States for a solution and to act
as a universal standard by using software-defined architectures, although
this is yet to materialise. The issue of interoperability and integration
depends on uniform standards, specifications and procurement regulations,
which have yet to be implemented across the European MODs.

"Various radio waveforms are still evolving and a process of systems
integration solutions has yet to become fully effective," explains Ahmed.
"MODs are increasingly pushing the onus of their equipment management (from
initial purchase decisions to routine maintenance, and end-user training to
interim capability upgrades) onto the supplier companies," concludes Ahmed.
"Several European countries have resorted to the 'wait-and-see approach' for
clarity on the direction and pace of changes in the communication technology
in one hand and the evolving through-life communication network management in
the other." It is therefore imperative for the defence companies to
understand the nuances of through-life capability management (TLCM) of nodes
and networks as the technology evolves if they are to remain competitive
going forward. Effectively managing project risks through proper
understanding of cost implications related to services delivery at various
stages of the equipment life cycle would certainly help them remain
profitable along the journey.

If you are interested more information on this study, please e-mail
Monika Kwiecinska, Corporate Communications, at monika.kwiecinska@frost.com,
with your full name, company name, title, telephone number, company e-mail
address, company website, city, state and country.

European Tactical Communication Market Assessment is part of the Defence
Growth Partnership Service programme, which also includes research in the
following markets: The European Strategic Communications Market, Future
European Software Defined Radio Market, The Middle East Strategic and
Tactical Communications Market, Asia Pacific Naval Communications Market, and
The European First Responders C3I Market. All research services included in
subscriptions provide detailed market opportunities and industry trends that
have been evaluated following extensive interviews with market participants.

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    European Tactical Communication Market Assessment
    M464

    Contact:
    Monika Kwiecinska
    Corporate Communications - Europe
    P: +48-22-390-4127
    F: +48-22-390-4160
    E: monika.kwiecinska@frost.com

www.frost.com

Monika Kwiecinska, Frost & Sullivan, Corporate Communications - Europe, +48-22-390-4127, fax, +48-22-390-4160, monika.kwiecinska at frost.com