NSR Report Sees Satellite Capacity Pricing Stabilizing, yet Increasingly Complex Period for Pricing Negotiations

Satellite Operators sit at Capacity Pricing Crossroads with Macroeconomic Headwinds, External Competitive Pressures, and Supply Chain Challenges   Cambridge, MA – May 31st, 2022- NSR’s Satellite Capacity Pricing Index, 8th Edition finds Satellite Operators sitting at a crossroads of multiple macroeconomic headwinds, external competitive pressures, and supply chain challenges, driving need for innovative strategies. As pricing stabilizes.

BollyInside: Satellite capacity prices stabilize, but LEO and VHTS competition looming points to renewed pressure

“While contract renegotiations took place across the satcom value chain to address a black-swan drop in demand, unit pricing nears stabilization across several sectors, as forecasted by NSR in previous editions of this report,” states NSR in BollyInside article: Satellite capacity prices stabilize, but LEO and VHTS competition looming points to renewed pressure. “In this.

NSR Report: Satellite Capacity Prices Stabilizing, but Looming LEO & VHTS Competition Point to Renewed Pressure

Despite Global Price Declines Averaging 5% in 2021, Industry Approaches Temporary Stabilization Cambridge, MA – NSR’s latest report, Satellite Capacity Pricing Index, 7th Edition (2021) finds capacity price declines decelerating in 2021, with the global mean price index declining by ~5-6% in Q1 2021, in contrast to ~13% in Q1 2020. This decline is projected.

Capacity: Burning through money

No wonder that satellite analysis company Northern Sky Research (NSR) believes the industry’s revenues will go down by 7% and will take more than three years to go back to last year’s levels. NSR agrees with OneWeb’s assertion that the fall is the result of the Covid-19 pandemic, “and the recovery won’t be immediate”.

Smallcells and Satellites: It’s a Match!

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.