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Turning the Satellite Business Model Upside-Down - NSR Gagan Agrawal, Nov 2017
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 downstream in the long term. Several factors such as high regional competition, video demand absorption through higher compression, supply-demand mismatch impact on pricing, pressure from OTT, and commoditization of capacity have driven the market to a stagnation point. However, no trend is bigger than the continuous manufacturing innovation to pack more Mbps per unit of million dollars cost. By pushing CAPEX per Gbps to ever more efficient levels, operators are able to undercut competitors on lease pricing, forcing many to sell at or below break-even profit margins, creating a zero-sum effect overall.
NSR  satellite  business  finance  * 
november 2018 by pierredv
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