Northern Sky Research

The Bottom Line

Author: Gagan Agrawal (X)

  • The advent of bulk HTS satellite capacity has changed the satcom game. Irreversibly. What started as an alternative to FSS, an innovation with frequency re-use spot beams, has become mainstream and dictated price changes for at least the past 2 years. 60% wholesale price drop across HTS verticals, most prominently for backhaul and consumer broadband, is a telling factor for any industry. The data market is striving to achieve the holy grail of telecom pricing through capacity supply…

  • Much has been commented about the current state of the industry: capacity oversupply, declining capacity prices, a shift to service businesses to strengthen top-line revenue, partnerships with end-customers, and consolidation necessity to future-proof. After a careful study of the past few years, it is certain that most trends are true - reflecting operator strategies as 2017 financial results show. Though, less quantified is the effect on the FSS industry due to these unanticipated…

  • The satellite industry has witnessed a meltdown over the past few years with capacity prices falling over 30-60% across most verticals. This decline doesn’t just stem from increased supply and competition, but also from critical intertwined factors: increased bargaining power of service providers (SPs) as operators dilute their market positions for aggressive selling and a correction for high-throughput capacity to account for CapEx/Gbps cost proportionate to end-lease price. These…