NSR Press Releases

NSR Report Provides Industry’s Only Satellite Capacity Pricing Benchmark

Latest Q4 2016 Index Finds Enterprise Data Prices Fell ~10% in 2016, while Broadcast and Mobility Show Mixed Results


Cambridge, MA – October 20, 2016 NSR’s Satellite Capacity Pricing Index, 2nd Edition (Q4 2016), released today, finds satellite capacity pricing in a prolonged free-fall for most applications as more supply comes online and HTS offerings proliferate.  Data-centric applications saw the largest declines across all regions and frequency bands, while video-centric capacity remained slightly more resilient amidst challenging market conditions.  Prices for Enterprise Data capacity have fallen by a dollar-denominated ~8-12% over the past 10 months. This compares to TV broadcasting prices dropping at lower rates in the 3-5% range, and commercial mobility seeing significant volatility.

“We have seen an apparent acceleration in pricing declines for data markets over the past year, with prices falling by ~10% during 2016”, notes NSR. “Overall, we’ve seen pricing reductions across all regions and frequency bands, with data prices seeing convergence between FSS and GEO-HTS somewhat faster than we expected,” adds NSR.

SCPI2 Q4 2016 finds that operator business models are evolving quickly, but there is also much disagreement over the best way to evolve. This has led to a higher degree of price volatility, particularly for GEO-HTS capacity, and has also led to more aggressive pricing in order to win market share. SCPI2 Q4 2016 creates a weighted average from these pricing inputs and provides the reader with a “rate card” price index for satellite capacity across regions, applications, and frequency bands. The pricing study likewise provides NSR’s signature analysis as it relates to the “range” of prices present in different verticals.

NSR’s SCPI2 Q4 2016 is the first to show an evolution of pricing using real-world operator inputs from an expanding pool of operators, as well as service providers. In providing an objective comparison of pricing data, NSR’s SCPI2 Q4 2016 allows the reader to gain a much better understanding of how spot prices have evolved over the past year.

By taking real-world operator and service provider pricing inputs, NSR’s SCPI2 Q4 2016 provides the most objective and actionable analysis of the current pricing paradigm for satellite capacity. With more in-depth and more comprehensive qualitative and quantitative factors impacting pricing, NSR’s SCPI is quite simply the most complete yet also simple barometer for satellite capacity pricing.


About the Report

NSR’s Satellite Capacity Pricing Index, 2nd Edition (Q4 2016) is the second installment in NSRs Satellite Capacity Pricing Index, a periodical barometer of the pricing paradigm of the satellite telecommunications industry. This study was the first to utilize real-world operator pricing inputs, and now offers expanded analysis and discussion surrounding the evolution of real-world pricing figures over the course of the previous 10 months. With data from service providers now included in the pricing metrics, NSR’s SCPI2 Q4 2016 provides a significantly expanded look at the pricing paradigm in the industry, not just today but over the past year, and looking forward into the future.

For additional information on this report, including a full table of contents, list of exhibits and executive summary, please visit www.nsr.com or call NSR at 617-674-7743.


About NSR

NSR is the leading global market research and consulting firm focused on the satellite and space sectors. NSR’s global team, unparalleled coverage and anticipation of trends with a higher degree of confidence and precision than the competition is the cornerstone of all NSR offerings. First to market coverage and a transparent, dependable approach sets NSR apart as the key provider of critical insight to the satellite and space industries. Contact us at info@nsr.com to discuss how we can assist your business.