Standard: $4,495 Enterprise: $8,495
NSR’s Satellite Capacity Pricing Index, 5th Edition (2019) continues as the leading industry resource for satellite capacity pricing worldwide. Built on 15+ years of pricing research and synthesized with inputs from top strategic leaders in the satellite operator and service provider industry, NSR’s Satellite Capacity Pricing Index, 5th Edition (2019) delivers thought-provoking insights into how multiple factors affect pricing. Building on a per region and per application analysis, this report presents a quantitative evolution across the market until 2020.
NSR’s trailblazing analysis focuses on a key burning question: will the industry reach price commoditization and what are the consequences thereof. Price decline has been the biggest driver for the satellite industry, triggering business model changes and enabling scale via acquisitions. Surges in HTS capacity coming online accelerate this decline. This state of the market presents key areas of concern for operators around quantifying the market index lease price and what range of pricing can be expected.
On the opposite side, this trend also presents double-digit growth opportunities for service providers to buy in bulk and capture latent demand for ubiquitous connectivity. This bi-polar fight in the market raises the old question of managed services vs. pure play lease business model sustainability, which the current report captures through various price points. NSR’s Satellite Capacity Price Index, 5th Edition (SCPI5) analyzes both viewpoints, backs it up with a price index, price range, discount/premium price factors dissection, 1-year forecast price and benchmarks a Global Mean Pricing Index (GMPI) to showcase various current and evolving strategies and provides recommendations on the future of business in this industry.
BOTTOM LINE: What is the current state of the market, how is it expected to change, and what are NSR’s recommendations?
NSR’s SCPI5 combines base price and factor-based inputs from regional operators, Big Four operators, and service providers, to provide an even, balanced and well-rounded view of pricing within the industry. Expanding on NSR’s Q1, 2018 edition of this study, this most recent edition provides the historical price index since 2016 with forecast until 2020, and a global mean price index along with the current spot prices/range.
NSR’s SCPI5 includes pricing matrices on traditional FSS C-band, FSS Ku-band, and GEO-HTS and standalone Ka-band HTS capacity for Q1 2019, segmented regionally across 10 regions, and by applications across Video Distribution, DTH, Enterprise, Trunking/Backhaul, Broadband, Mobility and Government-Military segment. Beyond this, NSR quantifies a range of pricing with appropriate standard deviation backed by anchor criteria, thus providing bound estimates for various combinations of factors such as contract duration, amount of capacity (small/large customer), fill rates, and customer retention discounts. In addition to pricing ranges, NSR also includes significant qualitative analysis on both existing prices and the market expectations one year into the future.
NSR’s SCPI5 features the continuation of the pricing tool and pricing forecast model used in 4th edition to analyse both the price influencing factors, and the econometric changes in the industry to appropriately model the decline of prices in 2019-2020. The 18 factors used across four verticals help untangle key insights around discount and premium pricing ranges, and the % change from last year reproduces
the dynamics that industry has witnessed. Due to this elaborate dissection of discount pricing, several operator strategies and global mean pricing index can be interpreted well. The study uses inputs from NSR reports including, but not limited to Global Satellite Supply and Demand, Satellite Operator Financial Analysis, VSAT and Broadband Satellite Markets, and Government & Military Satellite Communications.