ADVFN: NSR Report sees Satellite Capacity Pricing Stabilizing, yet Increasingly Complex Period for Pricing Negotiations
NSR’s Satellite Capacity Pricing Index, 8th Edition finds Satellite Operators sitting at a crossroads of multiple macro-economic headwinds, external competitive pressures, and supply chain challenges, driving need for innovative strategies. As pricing stabilizes in Q2 2022, technology efficiencies, supply-demand gap and macro-economic factors trigger increasingly complex pricing negotiations.
For some service providers, such as SpaceX, inflation pressure enables an increase in end-user pricing; however, due to competitive pressures, many wholesale capacity providers do not have the bargaining power to significantly increase pricing.
In addition, the geopolitical crisis in Europe, C-band repurposing in many regions, currency devaluation in emerging markets and general economic slowdown all contribute to increased uncertainty for sustained demand growth in video and connectivity markets.