{"id":60598,"date":"2020-01-21T20:52:36","date_gmt":"2020-01-21T12:52:36","guid":{"rendered":"https:\/\/wp-productionenv-bjg9h2g2bgg5b8aa.southeastasia-01.azurewebsites.net\/news\/global-fss-satcom-operators-face-headwinds\/"},"modified":"2020-01-21T20:52:36","modified_gmt":"2020-01-21T12:52:36","slug":"global-fss-satcom-operators-face-headwinds","status":"publish","type":"post","link":"https:\/\/starpath.global\/news\/global-fss-satcom-operators-face-headwinds\/","title":{"rendered":"Global FSS Satcom Operators Face Headwinds"},"content":{"rendered":"<p>The global satellite communications industry is undergoing rapid change today, with price declines, large increases in capacity volumes, and a general pivot of the satellite operator business model towards selling lots of Mbps, as opposed to relatively few MHz. <\/p>\n<p>According to Euroconsult\u2019s latest report, \u201cFSS Operators: Benchmarks &amp; Performance Review,\u2019\u2019 Geostationary Orbit (GEO) operators are challenged by the complex business environment over the past few years. FSS operators\u2019 capacity revenue declined from a peak of $12.3 billion in 2014 to $11.5 billion in 2018. Yet the structure of the FSS market has been largely stable over the past few years. <\/p>\n<p>\t\t\t\t<img loading=\"lazy\" width=\"300\" height=\"225\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/K26ywEtNRkKRvAeSmiuI_VS_020120_Cover_DGTL-300x225.jpg\" class=\"attachment-medium size-medium\" alt=\"\" style=\"width: 120px; height: auto;\" decoding=\"async\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/K26ywEtNRkKRvAeSmiuI_VS_020120_Cover_DGTL-300x225.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/K26ywEtNRkKRvAeSmiuI_VS_020120_Cover_DGTL-800x600.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/K26ywEtNRkKRvAeSmiuI_VS_020120_Cover_DGTL-640x480.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/K26ywEtNRkKRvAeSmiuI_VS_020120_Cover_DGTL.jpg 1280w\" sizes=\"(max-width: 300px) 100vw, 300px\">\t\t\t<\/p>\n<h3 class=\"fs-5 mt-0\">Explore the February 2020 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<h3>Market Concentration<\/h3>\n<p>The market remains concentrated at the top and increasingly fragmented at the bottom, as 11 new operators have joined the industry since 2013. Of these 11, more than 70% are national operators who mainly serve the domestic market. Direct\u2013to\u2013Home (DTH) platforms and service providers such as telcos primarily use state-owned satellite capacity. The operator Telebras, which serves Brazil, has a negative impact on global operators with a presence in Brazil. Operators such as Algerian Space Agency (ASAL), Turkmenistan National Space Agency (TNSA), and Laosat have smaller impacts on global operators, as these markets are not as significant as Brazil.<\/p>\n<p>Satellite operators have traditionally been the beneficiary of large backlogs, due to long contracts with extremely strict cancellation clauses. DTH video broadcasting have historically been the longest contracts, with customers regularly leasing satellites for their entire lifetime. The traditional satellite video business is facing increasing competition from Over-the-Top (OTT), with the DTH platforms feeling the most immediate pain, but with satellite operators suffering collateral damage in the form of backlog structure. For example, the FSS industrial average backlog to sales ratio dropped from 4.2x in 2014 to 3.5x in 2018 with nearly all operators facing declining backlog.  Usually video contracts have a length for 5 to 15 years. However, data contracts have an average contract length between 1-3 years. As the transition progresses, we would anticipate the backlog to revenue ratio to continue to decrease in the short to medium term.<\/p>\n<p>To face this market situation, satellite operators have begun to focus more on data applications and services. The impact for satcom operators is that satcom operators are selling much more capacity at a lower price per Mbps. For example, ExploreNet committed 50Gbps on Jupiter-3 capacity for 15 years (with a contract value of $250 million) in April 2019. These types of large and long-term data contracts are very rare historically.<\/p>\n<p><script>var AIAD_fcd45f981d570e35cee941b23edc69c7_6a67eece07041;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_6a67eece07041 = googletag.defineSlot('\/987\/satellitetoday.com\/via-satellite-digital-issue-ads', [ [600, 300], [300, 250], [970, 250] ], 'div-gpt-ad-1774631144891- 0-6a67eece07043').defineSizeMapping(AIMAP_21fe3bcfb86a8660aba4e721ee9338f3).setCollapseEmptyDiv(true).addService(googletag.pubads());   });<\/script><script>googletag.cmd.push(function() { googletag.display('div-gpt-ad-1774631144891- 0-6a67eece07043'); });<\/script><\/p>\n<h3>Investment Flows in Data Applications <\/h3>\n<p>The features of High Throughput Satellites (HTS) better suit the need of data applications. Operators have been investing in HTS\/payload with enhanced flexibility in terms of coverage, power and bandwidth allocation, and network connectivity. In 2014, there were only 13 satellite operators with satellite assets carrying HTS capacity. Comparably, in 2019, there are 27, and it is becoming increasingly rare to see any operator procure a \u201cpurely FSS widebeam\u201d satellite. <\/p>\n<p>For example, Eutelsat recently signed a letter of agreement with Thales to procure Eutelsat 10B and the satellite is planned to carry two multi-beam HTS Ku-band payloads targeting primarily <\/p>\n<p>the mobility market, which is seen as the highest growth data application.<\/p>\n<h3>Enhancing Service to Stay Competitive<\/h3>\n<p>Customers are looking for solutions. In order to maintain competitiveness, satellite operators are offering more managed service into their wholesale strategies at the cost of higher operating expenses. For example, Intelsat offers centralized backend network management tools such as IntelsatOneFlex, and Eutelsat started to provide satellite OTT value-added service named Cirrus. SES and Inmarsat are promoting end-to-end network solutions for selected vertical markets and customers; Echostar and Viasat are fully vertically integrated to access the end-user. Moving forward, operators will increasingly be forced to vertically integrate into managed services \u2014 an expensive and risky proposition \u2014 or risk seeing their traditional wholesale capacity leasing model slide further into commoditization and pricing pressures. Those with scale and those with a strong presence in specific market segments such as mobility or government and military will have an advantage.<\/p>\n<h3>NGSO Operators Joining the Game<\/h3>\n<p>Non-Geostationary Orbit (NGSO) constellations have only added to the challenges of the GEO satcom industry.  These NGSO constellations aim to provide terabits per second of capacity from mostly Low-Earth Orbit (LEO), doing so with billions of dollars raised from venture capitalists. NGSO activity in 2018 and 2019 was more intense than ever before, and several projects have recently begun to materialize. OneWeb, Telesat LEO, and SpaceX all have launched their first test satellites. While still likely at least two years away, the impact of NGSOs has already been felt in the adoption of a \u201cwait and see\u201d approach from almost all GEO operators, as few companies want to commit to major fleet renewal during periods of such uncertainty. Moving forward, regardless of the success or failure of the NGSOs (and there remains ample scope for failure), the impact will continue to be felt in the short run as pricing uncertainty and capacity gluts impact market pricing and customer willingness to commit. <\/p>\n<p>,<\/p>\n<h2 class=\"widget-title\">In This Issue<\/h2>\n<p>\t\t\t\t\t<!-- post id 406187:  \/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=\"224\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/zKLZGQ4KQHmM6WQNQ0ZM_VS_020120_Leo_DGTL-300x224.jpg\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/zKLZGQ4KQHmM6WQNQ0ZM_VS_020120_Leo_DGTL-300x224.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/zKLZGQ4KQHmM6WQNQ0ZM_VS_020120_Leo_DGTL-800x598.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/zKLZGQ4KQHmM6WQNQ0ZM_VS_020120_Leo_DGTL-640x479.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/zKLZGQ4KQHmM6WQNQ0ZM_VS_020120_Leo_DGTL.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\tHeading into the LEO Revolution<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 406207:  \/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=\"300\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/OOR4eWTWQcWsV8eL8a0s_Opinion_Bubbles_Web-300x300.jpg\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" loading=\"lazy\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/OOR4eWTWQcWsV8eL8a0s_Opinion_Bubbles_Web-300x300.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/OOR4eWTWQcWsV8eL8a0s_Opinion_Bubbles_Web-800x800.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/OOR4eWTWQcWsV8eL8a0s_Opinion_Bubbles_Web-150x150.jpg 150w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/OOR4eWTWQcWsV8eL8a0s_Opinion_Bubbles_Web-640x640.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/OOR4eWTWQcWsV8eL8a0s_Opinion_Bubbles_Web.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\tIn Perfect Harmony:  A Look Ahead at  a \u201cSatcom Enterprise\u201d  for 2020 \u2013 and Beyond<br \/>\n\t\t<\/h3>\n<p><!-- .post-snippet --><\/p>\n<hr class=\"my-3\">\n<p>\t\t\t\t\t<!-- post id 406200:  \/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\/2026\/04\/77J36yTjTDeAJbTMDDj8_VirginOrbit_Cosmic_Launcherone-300x200.jpg\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" loading=\"lazy\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/77J36yTjTDeAJbTMDDj8_VirginOrbit_Cosmic_Launcherone-300x200.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/77J36yTjTDeAJbTMDDj8_VirginOrbit_Cosmic_Launcherone-800x533.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/77J36yTjTDeAJbTMDDj8_VirginOrbit_Cosmic_Launcherone-640x427.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/77J36yTjTDeAJbTMDDj8_VirginOrbit_Cosmic_Launcherone.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\tLaunchers Get Ready for the Small Satellite Gold Rush<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 406194:  \/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=\"205\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/lIZcsatxTnGIXyz7oUGT_VS_020120_Groundwork-300x205.jpg\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" loading=\"lazy\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/lIZcsatxTnGIXyz7oUGT_VS_020120_Groundwork-300x205.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/lIZcsatxTnGIXyz7oUGT_VS_020120_Groundwork-800x546.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/lIZcsatxTnGIXyz7oUGT_VS_020120_Groundwork-640x437.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/lIZcsatxTnGIXyz7oUGT_VS_020120_Groundwork.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\tLEO Advances on the Ground<br \/>\n\t\t<\/h3>\n<p><!-- .post-snippet --><\/p>\n<hr class=\"my-3\">\n<p>\t\t\t\t\t<!-- post id 406203:  \/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=\"225\" height=\"300\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/wbZ9qWrtRpOqd4R4tzG0_VS_020120_Sat20_Preview_Opener-225x300.jpg\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" loading=\"lazy\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/wbZ9qWrtRpOqd4R4tzG0_VS_020120_Sat20_Preview_Opener-225x300.jpg 225w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/wbZ9qWrtRpOqd4R4tzG0_VS_020120_Sat20_Preview_Opener-601x800.jpg 601w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/wbZ9qWrtRpOqd4R4tzG0_VS_020120_Sat20_Preview_Opener-1154x1536.jpg 1154w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/wbZ9qWrtRpOqd4R4tzG0_VS_020120_Sat20_Preview_Opener-640x852.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/wbZ9qWrtRpOqd4R4tzG0_VS_020120_Sat20_Preview_Opener.jpg 1280w\" sizes=\"auto, (max-width: 225px) 100vw, 225px\">\t\t\t\t\t<\/figure>\n<h3 class=\"fs-4 w-100 line-clamp-3\">\n<p>\t\t\t\tSATELLITE 2020: Conference Program Preview<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 406213:  \/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=\"167\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/gZx17grTB60078CUYAAk_EdNote_Header_Web-300x167.jpg\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" loading=\"lazy\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/gZx17grTB60078CUYAAk_EdNote_Header_Web-300x167.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/gZx17grTB60078CUYAAk_EdNote_Header_Web-800x446.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/gZx17grTB60078CUYAAk_EdNote_Header_Web-640x357.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2026\/04\/gZx17grTB60078CUYAAk_EdNote_Header_Web.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\tThe Revolution of the Roaring \u201820s:  The Satellite Industry Comes of Age<br \/>\n\t\t<\/h3>\n<p><!-- .post-snippet --><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The global satellite communications industry is undergoing rapid change today, with price declines, large increases in capacity volumes, and a general pivot of the satellite operator business model towards selling lots of Mbps, as opposed to relatively few MHz. According to Euroconsult\u2019s latest report, \u201cFSS Operators: Benchmarks &amp; Performance Review,\u2019\u2019 Geostationary Orbit (GEO) operators are [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":60601,"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-60598","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\/60598"}],"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=60598"}],"version-history":[{"count":0,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/60598\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media\/60601"}],"wp:attachment":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media?parent=60598"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/categories?post=60598"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/tags?post=60598"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}