Satellite operators are at a crossroads due to a rapid revolution in satellite capacity provisioning worldwide. The satellite capacity industry was originally dominated by recurring, high-margin video applications, but its focus has now shifted to high-growth, data-centric services. A range of fixed and mobile data applications now dominate the growth story via numerous capacity types, orbits and ultimately, business.
While telcos have long worked with satellite providers, the scale of potential deals is changing. Lluc Palerm-Serra, analyst for NSR, an Analysys Mason company, reports the size of the deals is growing significantly. Just three to five years ago, a 100-site deployment was “massive” for backhaul. Today, some deals involve thousands of sites. “In Mexico.
Satellite is a cool technology again! But there is still a lot of work to be done. By way of background, despite recent significant improvements in Satellite Backhaul fundamentals, specifically throughput, capacity prices, ground segment, and cheaper RAN (among others), the industry was struggling to change MNOs’ mindsets as satellite was still perceived as an.
Targeting the reduction of infrastructure costs, eliminating vendor lock-in effects and accelerating virtualization (do these objectives sound familiar to the Satellite industry?), Mobile Operators have embarked on the standardization of Open RAN. In fact, this is one of the hottest topics in the Telco industry with major endorsements like the commitment by the 4 largest.
Backhaul is one of the key growth engines for the Satcom Industry. A large portion of satellite capacity coming online in the next few years is purposely designed for Backhaul and, despite COVID-19, the segment continued to show major contract wins. But how big is the market, and for how long can this growth trajectory.