NSR Report: Satcom Pricing to Stabilize by 2021, with Aero Boosting Satellite Operator Dynamics
While Global Prices Decline 9%-22% in 2020, Industry Aims for Improvement in Margins
Cambridge, MA – NSR’s latest report, Satellite Capacity Pricing Index, 6th Edition (2020) finds capacity pricing declines decelerating in 2020, with the global mean price index declining by ~13% in Q1 2020, in contrast to ~17% in Q1 2019. This decline slows further in 2020, with signs of stabilization across some regions, bands, and applications to come by 2021 in advance of large waves of both GEO and Non-GEO capacity entering the market.
“Competition to grab market share has slowed considerably compared to 2017-18, as operators look to touch base with P&L fundamentals by tiering capacity. Maritime is witnessing a boost in demand, while Aero looks to post the highest growth in the segment, bringing much-needed pricing stability, and a return to double-digit growth for network wholesale revenues,” states Gagan Agrawal, NSR Senior Analyst and report author. NSR forecasts Consumer Broadband and Backhaul to exhibit declines of ~15-20% due to highly CAPEX efficient capacity coming online in 2021. Mobility and Gov-Mil segments will provide much more stability.
Operators are accepting the trend of price declines, offsetting losses via increasing contract volumes and choosing specific regions to grow. Duration of contracts has consistently decreased, and with it, the bargaining power of operators. Though, increasing ground efficiencies and ARPUs in the service segment has prompted several operators to pursue managed services to arrest wild swings in pricing and revenue.
About the Report
NSR’s Satellite Capacity Pricing Index, 6th Edition (2020), provides the industry’s leading and longest running analysis of satellite capacity worldwide. SCPI6 study covers all major applications under Video and DTH Broadcasting, Data networks including Backhaul and Broadband, Mobility (sectioning into Maritime/O&G and Aero for the 6th Edition) and Gov-Mil segments, across 10 regions of the world and FSS and HTS frequency bands. The report is unparalleled on the depth of insight provided through index prices, ranges and forecasts. Both the proprietary SCPI6 pricing tool and analysis are definitive resources to predict the near to medium term scenarios for the industry and differentiate regional/vertical based forecasts to answer strategic questions on the evolving business models in the satcom industry.
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 +1-617-674-7743.
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.
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Companies Profiled or Mentioned in this Report:
ABS, Antrix, APSTAR, Arabsat, AT&T, Avanti, Disney, Eutelsat, HellasSat, Hispasat, Hughes, Inmarsat, Intelsat, Kacific, Netflix, Nilesat, OneWeb, RSCC, SES, SpaceX, ViaSat, XporeNet, and Yahsat.