As FPA manufacturers find themselves stuck between the ultra-competitive aero market and the opportunistic, but challenging to meet, consumer broadband market, the Enterprise broadband market is fast becoming the next step in the evolution of FPA technology.
One trend is clear: COVID-19 punctuates the need to boost network performance not just where the digital divide persists, but in locations where traffic surges will occur post the pandemic era.
Satellite capacity price reductions have been critical to unlocking growth in markets like Backhaul. New price points made ultra-rural network deployments ROI-positive, unleashing solid elasticities and growth. But, is satcom leaking value to other steps of the value chain (MNOs, integrators) due to price competition? How should satellite operators and integrators optimize their pricing strategies.
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.
Global satcom capacity revenues continue to evolve at low single-digit rates scoring 2% growth last year. Obviously, data is becoming the star for revenue growth and operators with higher exposure to video and legacy FSS capacity are more prone to turbulence. But, in these transformative times in which raw capacity is commoditizing, operators must rethink.