Space News: Riding the consolidation wave
Fewer independent satellite operators would make it harder for new operators to enter the market, according to analysts at Northern Sky Research. Future entrants would also likely struggle to offer the same capabilities as those that have joined forces. However, even though fewer operators means less competition to drive down prices, NSR analysts do not see end-user capacity costs changing much as a result. The supply of capacity for high-through-put and fixed satellite services (FSS) is still higher than demand they see across all orbits. Overall, NSR analysts foresee better cost economics and improved bandwidth utilization —namely, higher satellite fill rates — from operators entering a consolidation period that could ultimately create a “healthier ecosystem.”