When considering 5G, one might inadvertently focus on user-oriented characteristics such as latency or throughput. However, the reality is that one area where 5G will be more disruptive is on the backend of networks
The satcom industry is going through turbulent times. A wave of high-level bankruptcies, layoffs, cost-cutting measures and investment deferrals have rattled the industry. COVID obviously places significant pressure in an already challenged ecosystem, hitting key areas of Satcom growth like Mobility. But putting aside the panic around COVID for a moment, it is clear the business fundamentals for Satcom remain very solid. The actors that play their cards well will be able to capture double-digit growth once we reach the “new normal”.
The satellite industry is in the midst of the largest transformation since the inception of satellite communications over five decades ago. In this new era that can be referred to as “the 21st-century Space Race”, innovations in space technology have converged to pave the way for a truly disrupt-able environment.
With recent declines in satellite capacity pricing, Satellite Backhaul became a real alternative for MNO rural deployments. However, CAPEX involved in the cell tower, primarily designed for urban areas with a dense distribution of subscribers, limited the market opportunity to relatively large population agglomerations.
M&A activity in the VSAT platform segment has been very dynamic in the last several months. After iDirect/Newtec fired the starting gun, Comtech conducted a series of acquisitions including UHP and Gilat.