The interplay between Exploration and Exploitation is critical for the long-run performance of a solution, company, or sector. Enterprise VSAT market revenues have plateaued with long exploitation of the conventional satellite connectivity offerings and hence, the industry had been in exploration for next-gen technologies, products or solutions to push the segment’s topline on the growth.
Pricing has been a soft spot for the satcom industry over the past 4 years, as OTT pressure on video and data segment competition intensified. Changing metrics have sent operators looking to optimize revenue per MHz, in turn driving manufacturing innovation.
As fiscal year 2017 financials trickled in, it was clear that the impact of a changing market and pricing declines continues to hit the bottom line of commercial satellite operators. Operators are being forced to re-evaluate decisions on multiple levels; from which applications to target, partners to engage, and satellites to order. There are two.