{"id":56696,"date":"2021-09-10T00:24:46","date_gmt":"2021-09-09T16:24:46","guid":{"rendered":"https:\/\/wp-productionenv-bjg9h2g2bgg5b8aa.southeastasia-01.azurewebsites.net\/news\/operators-seek-diverse-business-models-to-add-value\/"},"modified":"2021-09-10T00:24:46","modified_gmt":"2021-09-09T16:24:46","slug":"operators-seek-diverse-business-models-to-add-value","status":"publish","type":"post","link":"https:\/\/starpath.global\/news\/operators-seek-diverse-business-models-to-add-value\/","title":{"rendered":"Operators Seek Diverse Business Models to Add Value"},"content":{"rendered":"<p>Faced with a steady decline in the price of their basic commodity, satellite operators have turned to vertical integration to drive efficiency savings and create new business models which capture more of the value chain.<\/p>\n<p>The price per unit of satellite bandwidth may be falling, but the revenue operators are able to earn from selling it is not, pointed out Ramesh Ramaswamy, executive vice president and general manager of Hughes Network Systems\u2019 International Division. He spoke Tuesday alongside executives from Intelsat, Yahsat, and SES in a session on fixed satellite services at the SATELLITE 2021 conference.<\/p>\n<p>\t\t\t\t<img loading=\"lazy\" width=\"300\" height=\"225\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2021\/03\/Pa8ysZETLi9NJFBN2sAO_VS_ShowDaily20202120Day20420DGTL_1-300x225.jpg\" class=\"attachment-medium size-medium\" alt=\"\" style=\"width: 120px; height: auto;\" decoding=\"async\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2021\/03\/Pa8ysZETLi9NJFBN2sAO_VS_ShowDaily20202120Day20420DGTL_1-300x225.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2021\/03\/Pa8ysZETLi9NJFBN2sAO_VS_ShowDaily20202120Day20420DGTL_1-800x599.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2021\/03\/Pa8ysZETLi9NJFBN2sAO_VS_ShowDaily20202120Day20420DGTL_1-640x480.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2021\/03\/Pa8ysZETLi9NJFBN2sAO_VS_ShowDaily20202120Day20420DGTL_1.jpg 1280w\" sizes=\"(max-width: 300px) 100vw, 300px\">\t\t\t<\/p>\n<h3 class=\"fs-5 mt-0\">Explore the Show Daily 2021 Day 4 Issue<\/h3>\n<p class=\"mb-0 fs-smaller text-balance\">Check out more from this issue and find your next story to read.<\/p>\n<p>\t\t\t<button class=\"btn btn-primary\" type=\"button\" data-bs-toggle=\"offcanvas\" data-bs-target=\"#offcanvasMENU\" aria-controls=\"offcanvasExample\" aria-label=\"button\" style=\"white-space: nowrap;\"><br \/>\n\t\t\t\tView More <i class=\"bi bi-arrow-right-circle\"><\/i><br \/>\n\t\t\t<\/button><\/p>\n<p>\u201cWe\u2019re all growing revenues and we\u2019re making money,\u201d Ramaswamy said, \u201cThe challenge we all face \u2014 and I\u2019d like to think that we\u2019ve stepped up \u2014 is to weather the price reduction on the individual components of the ecosystem, but then mitigate that by providing more innovative services and adding more value.\u201d <\/p>\n<p>He added that the key to success is to integrate those components and package them into value-added services: \u201cYou take the individual components, which are commoditized, but when you stick them together, you make sure that one plus one is three,\u201d he said.<\/p>\n<p>\u201cThe more vertically integrated you are, the more of the value chain you control, and the more willing you are to go downstream \u2014 the more likely you are to be one of the winners,\u201d Ramaswamy concluded. <\/p>\n<p><script>var AIAD_fcd45f981d570e35cee941b23edc69c7_6a692381a67f7;googletag.cmd.push(function(){var AIMAP_29b58f13885ebf8ea6b032f958eb0748 = googletag.sizeMapping().addSize([992, 100], [[970, 90], [970, 250]]).addSize([768, 100], [728, 90]).addSize([320, 100], [320, 50]).build();var AIMAP_737ce075cc05dd766c8f8ea08f3faa73 = googletag.sizeMapping().addSize([768, 100], [728, 90]).addSize([320, 100], [320, 50]).build();var AIMAP_21fe3bcfb86a8660aba4e721ee9338f3 = googletag.sizeMapping().addSize([1200, 100], [970, 250]).addSize([768, 100], [600, 300]).addSize([320, 100], [300, 250]).build();AIAD_fcd45f981d570e35cee941b23edc69c7_6a692381a67f7 = googletag.defineSlot('\/987\/satellitetoday.com\/via-satellite-digital-issue-ads', [ [600, 300], [300, 250], [970, 250] ], 'div-gpt-ad-1774631144891- 0-6a692381a67f8').defineSizeMapping(AIMAP_21fe3bcfb86a8660aba4e721ee9338f3).setCollapseEmptyDiv(true).addService(googletag.pubads());   });<\/script><script>googletag.cmd.push(function() { googletag.display('div-gpt-ad-1774631144891- 0-6a692381a67f8'); });<\/script><\/p>\n<p>Amit Somani, chief strategy officer for UAE-based provider Yahsat, went further, suggesting that innovation in the business model \u2014 how services are bundled together and how partnerships form \u2014 trumps technological innovation. \u201cTo differentiate [Yahsat from competitors based on] the technology would be quite challenging. We have good satellites, but others are there with a similar kind of infrastructure.\u201d<\/p>\n<p>Instead, what had helped the company thrive is innovations in the business model. \u201cPartnering, thinking about going downstream, thinking about hybrid models to do business. Product and business model is where we will do more innovation to capture that market,\u201d Somani said. <\/p>\n<p>Bill O\u2019Hara, Intesat vice president and general manager for Media, gently disagreed. <\/p>\n<p>\u201cMaybe there are times where infrastructure can be enough,\u201d he suggested, noting that Intelsat hasn\u2019t turned to vertical integration in its video and media services. But the company has thrived nonetheless, because it distributes to large and wealthy European markets like France, Germany, Spain, and the United Kingdom. <\/p>\n<p>\u201cThe value of our neighborhoods is such that we\u2019ve kept a very robust book of business. And we haven\u2019t lost deals to others that have been more vertically integrated, for example, largely on the strength of our infrastructure,\u201d O\u2019Hara said. <\/p>\n<p>\u201cThe value that we provide, the type of connectivity that we provide, at volume and scale is something that just cannot be duplicated from a terrestrial standpoint,\u201d he added.<\/p>\n<p>Indeed, traditional video distribution, either of live events to cable distributors, or Direct-to-Home (DTH), continues to be a major revenue stream for the operators. It currently represents about 60 percent of revenue for SES, said Elias Zaccack, the company\u2019s senior vice president for Commercial in the Americas, and the rest is network services of various kinds \u2014 connectivity for governments, cruise ships, and airlines. <\/p>\n<p>\u201cThe video business is extremely resilient,\u201d Zaccack said, noting that the company announced earlier in the year that it had successfully secured long term renewals most of its major DTH providers. But, he added, this is a mature market that is not expanding. <\/p>\n<p>\u201cThe growth is coming from the network side,\u201d he said. \u201cThe data part of the business \u2014 whether it\u2019s government, cruise, aero, or cellular backhaul \u2014 is what\u2019s driving our growth at SES.\u201d<\/p>\n<p><script>var AIAD_fcd45f981d570e35cee941b23edc69c7_6a692381a6f58;googletag.cmd.push(function(){var AIMAP_29b58f13885ebf8ea6b032f958eb0748 = googletag.sizeMapping().addSize([992, 100], [[970, 90], [970, 250]]).addSize([768, 100], [728, 90]).addSize([320, 100], [320, 50]).build();var AIMAP_737ce075cc05dd766c8f8ea08f3faa73 = googletag.sizeMapping().addSize([768, 100], [728, 90]).addSize([320, 100], [320, 50]).build();var AIMAP_21fe3bcfb86a8660aba4e721ee9338f3 = googletag.sizeMapping().addSize([1200, 100], [970, 250]).addSize([768, 100], [600, 300]).addSize([320, 100], [300, 250]).build();AIAD_fcd45f981d570e35cee941b23edc69c7_6a692381a6f58 = googletag.defineSlot('\/987\/satellitetoday.com\/via-satellite-digital-issue-ads', [ [600, 300], [300, 250], [970, 250] ], 'div-gpt-ad-1774631144891- 0-6a692381a6f59').defineSizeMapping(AIMAP_21fe3bcfb86a8660aba4e721ee9338f3).setCollapseEmptyDiv(true).addService(googletag.pubads());   });<\/script><script>googletag.cmd.push(function() { googletag.display('div-gpt-ad-1774631144891- 0-6a692381a6f59'); });<\/script><\/p>\n<p>On the other hand, O\u2019Hara noted, the transformation of consumer media markets like the growth of Over-the-Top (OTT) services like Disney+ drives \u201can appetite and a desire to monetize viewers outside of the traditional media outlets that we provide such as Direct-to-Home services.\u201d <\/p>\n<p>O\u2019Hara said Intelsat is \u201cspending a lot of time understanding how we can help [our customers] monetize [their customer\u2019s eyeballs] and what we can bring to the table that\u2019s unique, not commoditized, and provides additional value to them, in addition to what we\u2019re already doing.\u201d<\/p>\n<p>New technologies like dynamic resource allocation \u2014 in which beams are moved or powered up instantaneously in response to shifting demands \u2014 or software-defined satellites which can be updated in orbit, will help drive efficiencies and \u201cenable our immediate customers to capture value in ways that they hadn\u2019t been in the past,\u201d O\u2019Hara said. VS<\/p>\n<p>,<\/p>\n<h2 class=\"widget-title\">In This Issue<\/h2>\n<p>\t\t\t\t\t<!-- post id 425:  \/code\/wp-content\/themes\/ai-beehive\/template-parts\/content\/post-snippet.php --><\/p>\n<figure class=\"overflow-hidden w-100 me-3\">\n<p>\t<img loading=\"lazy\" width=\"300\" height=\"225\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/lINIhCQ0Sq6ntT1AraTm_VS_ShowDaily20202120Day20420DGTL_2-300x225.jpg\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/lINIhCQ0Sq6ntT1AraTm_VS_ShowDaily20202120Day20420DGTL_2-300x225.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/lINIhCQ0Sq6ntT1AraTm_VS_ShowDaily20202120Day20420DGTL_2-800x599.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/lINIhCQ0Sq6ntT1AraTm_VS_ShowDaily20202120Day20420DGTL_2-640x480.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/lINIhCQ0Sq6ntT1AraTm_VS_ShowDaily20202120Day20420DGTL_2.jpg 1280w\" sizes=\"(max-width: 300px) 100vw, 300px\">\t\t\t\t\t<\/figure>\n<h3 class=\"fs-4 w-100 line-clamp-3\">\n<p>\t\t\t\tHughes, OneWeb and Yahsat: Industry News for Sept. 10<br \/>\n\t\t<\/h3>\n<p><!-- .post-snippet --><\/p>\n<hr class=\"my-3 d-block d-md-none\">\n\t\t\t\t\t\t<!-- post id 424:  \/code\/wp-content\/themes\/ai-beehive\/template-parts\/content\/post-snippet.php --><\/p>\n<figure class=\"overflow-hidden w-100 me-3\">\n<p>\t<img width=\"300\" height=\"200\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/rCTQmzf9RfS2wvpaEXTP_Royal20Visit-32-300x200.jpg\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" loading=\"lazy\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/rCTQmzf9RfS2wvpaEXTP_Royal20Visit-32-300x200.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/rCTQmzf9RfS2wvpaEXTP_Royal20Visit-32-800x533.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/rCTQmzf9RfS2wvpaEXTP_Royal20Visit-32-640x426.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/rCTQmzf9RfS2wvpaEXTP_Royal20Visit-32.jpg 1280w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\">\t\t\t\t\t<\/figure>\n<h3 class=\"fs-4 w-100 line-clamp-3\">\n<p>\t\t\t\tInside the UK Space Sector\u2019s Renaissance<br \/>\n\t\t<\/h3>\n<p><!-- .post-snippet --><\/p>\n<hr class=\"my-3\">\n<p>\t\t\t\t\t<!-- post id 422:  \/code\/wp-content\/themes\/ai-beehive\/template-parts\/content\/post-snippet.php --><\/p>\n<figure class=\"overflow-hidden w-100 me-3\">\n<p>\t<img width=\"300\" height=\"225\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/0Va3i5N1SPmUto3pu1Nt_VS_ShowDaily20202120Day20420DGTL_6-300x225.jpg\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" loading=\"lazy\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/0Va3i5N1SPmUto3pu1Nt_VS_ShowDaily20202120Day20420DGTL_6-300x225.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/0Va3i5N1SPmUto3pu1Nt_VS_ShowDaily20202120Day20420DGTL_6-800x599.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/0Va3i5N1SPmUto3pu1Nt_VS_ShowDaily20202120Day20420DGTL_6-640x480.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/0Va3i5N1SPmUto3pu1Nt_VS_ShowDaily20202120Day20420DGTL_6.jpg 1280w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\">\t\t\t\t\t<\/figure>\n<h3 class=\"fs-4 w-100 line-clamp-3\">\n<p>\t\t\t\tPentagon Works to Adopt Mature AI Capabilities for Satellite Communications<br \/>\n\t\t<\/h3>\n<p><!-- .post-snippet --><\/p>\n<hr class=\"my-3 d-block d-md-none\">\n\t\t\t\t\t\t<!-- post id 421:  \/code\/wp-content\/themes\/ai-beehive\/template-parts\/content\/post-snippet.php --><\/p>\n<figure class=\"overflow-hidden w-100 me-3\">\n<p>\t<img width=\"300\" height=\"225\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/cVzjzXc1SgqGmU7yJsc5_VS_ShowDaily20202120Day20420DGTL_4-300x225.jpg\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" loading=\"lazy\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/cVzjzXc1SgqGmU7yJsc5_VS_ShowDaily20202120Day20420DGTL_4-300x225.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/cVzjzXc1SgqGmU7yJsc5_VS_ShowDaily20202120Day20420DGTL_4-800x599.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/cVzjzXc1SgqGmU7yJsc5_VS_ShowDaily20202120Day20420DGTL_4-640x480.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/cVzjzXc1SgqGmU7yJsc5_VS_ShowDaily20202120Day20420DGTL_4.jpg 1280w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\">\t\t\t\t\t<\/figure>\n<h3 class=\"fs-4 w-100 line-clamp-3\">\n<p>\t\t\t\tRichard Branson Looks to the Future of Flight as His Space Journey Comes Full Circle<br \/>\n\t\t<\/h3>\n<p><!-- .post-snippet --><\/p>\n<hr class=\"my-3\">\n<p>\t\t\t\t\t<!-- post id 420:  \/code\/wp-content\/themes\/ai-beehive\/template-parts\/content\/post-snippet.php --><\/p>\n<figure class=\"overflow-hidden w-100 me-3\">\n<p>\t<img width=\"300\" height=\"225\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/ayuqmh9ORK5Z2DK9y5LH_VS_ShowDaily20202120Day20420DGTL_3-300x225.jpg\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" loading=\"lazy\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/ayuqmh9ORK5Z2DK9y5LH_VS_ShowDaily20202120Day20420DGTL_3-300x225.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/ayuqmh9ORK5Z2DK9y5LH_VS_ShowDaily20202120Day20420DGTL_3-800x599.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/ayuqmh9ORK5Z2DK9y5LH_VS_ShowDaily20202120Day20420DGTL_3-640x480.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/ayuqmh9ORK5Z2DK9y5LH_VS_ShowDaily20202120Day20420DGTL_3.jpg 1280w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\">\t\t\t\t\t<\/figure>\n<h3 class=\"fs-4 w-100 line-clamp-3\">\n<p>\t\t\t\tUpcoming Wave of Demand and Customer Requirements Push Changes in the Launch Landscape<br \/>\n\t\t<\/h3>\n<p><!-- .post-snippet --><\/p>\n<hr class=\"my-3 d-block d-md-none\">\n","protected":false},"excerpt":{"rendered":"<p>Faced with a steady decline in the price of their basic commodity, satellite operators have turned to vertical integration to drive efficiency savings and create new business models which capture more of the value chain. The price per unit of satellite bandwidth may be falling, but the revenue operators are able to earn from selling [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":56697,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[2],"tags":[],"class_list":["post-56696","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/56696"}],"collection":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/comments?post=56696"}],"version-history":[{"count":0,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/56696\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media\/56697"}],"wp:attachment":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media?parent=56696"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/categories?post=56696"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/tags?post=56696"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}