To deny the risks, give in to the hype and excitement of LEOs, and believe that “if you build it, they will come”, is not charting a clear, strategic path to success, but making a leap of faith.
NSR’s Global Satellite Capacity Supply and Demand, 16th Edition report, released today, confirms despite a challenging current climate for capacity sales, long-term projections are promising with revenues doubling over the next 10 years.
When NSR noted that IFC markets did not do so well in 2018, it was not comparing the ‘hype’ with its forecast, but rather its own forecast with respect to contracts signed, antenna production, installation rates and aircraft to be outfitted. All these factors did not pan out as expected and despite a rather gloomy.
With the satcom industry moving to network applications and integrated service business models, the price-demand equation has changed considerably over the last 5 years.
The traditional satcom industry can be argued to be entering its third transition phase, after the FSS video boom until 2010 and the HTS influenced pricing decline more recently. With languishing growth in 2018, alongside declining EBITDA margins and backlog, the operator industry remains uncertain on video, while debating on the merits of going fully.