{"id":65861,"date":"2018-03-14T00:50:58","date_gmt":"2018-03-13T16:50:58","guid":{"rendered":"https:\/\/wp-productionenv-bjg9h2g2bgg5b8aa.southeastasia-01.azurewebsites.net\/news\/what-will-it-take-to-boost-satellite-stock-prices\/"},"modified":"2018-03-14T00:50:58","modified_gmt":"2018-03-13T16:50:58","slug":"what-will-it-take-to-boost-satellite-stock-prices","status":"publish","type":"post","link":"https:\/\/starpath.global\/news\/what-will-it-take-to-boost-satellite-stock-prices\/","title":{"rendered":"What Will It Take to Boost Satellite Stock Prices?"},"content":{"rendered":"<p>The charts are pretty grim when it comes to the share prices of major satellite operators. During a Monday morning discussion between financial analysts at the SATELLITE 2018 Conference &amp; Exhibition, Northern Sky Research (NSR) President Christopher Baugh pointed out that, despite the industry\u2019s massive technological advancements, investors are generally much less bullish on Fixed Satellite Service (FSS) stocks than in previous years. <\/p>\n<p>According to Justin Cadman, Raymond James\u2019 former senior vice president of investment banking, the biggest contributor to the decline is the \u201cdramatic change in capital expenditure per Gigabit per second.\u201d High Throughput Satellites (HTS), and soon Low and Medium Earth Orbit (LEO\/MEO) broadband constellations, are bringing more bandwidth online than ever before. But that doesn\u2019t necessarily mean the demand is there to absorb all that extra capacity. \u201cPart of [the problem] is their model today is dependent on that wholesale sale of capacity,\u201d Cadman said. <\/p>\n<p>\t\t\t\t<img loading=\"lazy\" width=\"300\" height=\"225\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2018\/03\/pKm41XVIQ1aGAaggD9X6_ShowDaily18_Cover_Day3_DGTL-300x225.jpg\" class=\"attachment-medium size-medium\" alt=\"\" style=\"width: 120px; height: auto;\" decoding=\"async\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2018\/03\/pKm41XVIQ1aGAaggD9X6_ShowDaily18_Cover_Day3_DGTL-300x225.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2018\/03\/pKm41XVIQ1aGAaggD9X6_ShowDaily18_Cover_Day3_DGTL-800x599.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2018\/03\/pKm41XVIQ1aGAaggD9X6_ShowDaily18_Cover_Day3_DGTL-640x480.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2018\/03\/pKm41XVIQ1aGAaggD9X6_ShowDaily18_Cover_Day3_DGTL.jpg 1280w\" sizes=\"(max-width: 300px) 100vw, 300px\">\t\t\t<\/p>\n<h3 class=\"fs-5 mt-0\">Explore the Show Daily 2018 Day 3 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>Investors have kept a close eye on satellite companies as new technologies have disrupted traditional business models. Their overall concern, according to Wells Fargo Vice President of Equity Research Andrew Spinola, is that operators will continue to saturate their historical markets while struggling to recoup their investments from those same customers. \u201cInvestors are quite worried that \u2026 the demand won\u2019t be there, so that capacity falls back onto existing markets,\u201d he said. And in order for an industry to be healthy, it must be able to generate returns on capital, Cadman added. \u201cGrowth is important. None of us want an industry with eroding top lines,\u201d he said. <\/p>\n<p>The crux of the issue is that customers won\u2019t always shell out for bigger bandwidth packages just because they\u2019re offered at a lower price point. Instead, many will elect to keep the same bandwidth rates while \u201c[pocketing] the savings,\u201d Spinola said. This inelasticity of demand does not bode well for revenue-hungry satellite operators \u2014 so what\u2019s the next best step to take?<\/p>\n<p>One solution, the analysts agreed, is to focus that additional capacity on untapped verticals or applications where satellite has an inherent advantage, such as maritime or In-Flight Connectivity (IFC). \u201cIncumbent markets will continue to go sideways \u2014 it\u2019s these new markets that are much more interesting,\u201d Spinola said. <\/p>\n<p><script>var AIAD_fcd45f981d570e35cee941b23edc69c7_6a6ab1e74a8ec;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_6a6ab1e74a8ec = googletag.defineSlot('\/987\/satellitetoday.com\/via-satellite-digital-issue-ads', [ [600, 300], [300, 250], [970, 250] ], 'div-gpt-ad-1774631144891- 0-6a6ab1e74a8ee').defineSizeMapping(AIMAP_21fe3bcfb86a8660aba4e721ee9338f3).setCollapseEmptyDiv(true).addService(googletag.pubads());   });<\/script><script>googletag.cmd.push(function() { googletag.display('div-gpt-ad-1774631144891- 0-6a6ab1e74a8ee'); });<\/script><\/p>\n<p>In particular, Cadman said he is watching to see if the satellite industry will continue to converge with telcos over the 5G proposition, which could \u201cbring substantial demand.\u201d Spinola said he is also very bullish on C-band spectrum as a medium- to long-term revenue source in the United States for similar reasons. <\/p>\n<p>Ironically, although technology is the reason some operators are in this sticky situation, innovative advancements on the horizon could also be the solution. The panelists pointed to in-orbit servicing as one means for operators to squeeze the most out of their existing assets, enabling them to put their capex toward new, potentially more profitable business ventures. Improved hardware on the ground side, such as flat panel antennas, could also be a major gamechanger for operators competing against Mobile Network Operators (MNOs). \u201cAnything smaller, cheaper and faster is great to make this industry competitive against telcos,\u201d Spinola said. <\/p>\n<p>\u201cIf development [of low-cost ground terminals and equipment] continues and those types of technologies become widely available and useful for satellite-based applications, I\u2019d be very optimistic,\u201d Cadman added. <\/p>\n<p>In some circumstances, the best option may simply be to collapse the supply chain, suggested Wim Steenbakkers, global head of satellite finance at ING Wholesale Banking. Although some companies have been \u201csticking to their guns,\u201d absorbing a downstream service provider could unlock new opportunities to buoy their top lines, Steenbakkers said. Overall, the panelists unanimously predicted the satellite industry will see significant consolidation over the next two years or so, as top line growth remains restrained. <\/p>\n<p>\u201cThe landscape of the value chain for satcom has been traditionally the operators, the service providers and then the customer. In this brave new world with HTS and the forthcoming LEO\/MEO constellations, some of that will change, and I don\u2019t necessarily know if that\u2019s a bad thing,\u201d Cadman said.<\/p>\n<p>\u201cThere are way too many players. When you have 10 CEOs that all think they\u2019re going to get 30 percent of the market, it\u2019s a terrible place to be,\u201d Spinola added. \u201cI think it\u2019s going to happen when there\u2019s desperation.\u201d <strong>VS<\/strong><\/p>\n<p>,<\/p>\n<h2 class=\"widget-title\">In This Issue<\/h2>\n<p>\t\t\t\t\t<!-- post id 342:  \/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=\"139\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/6oLhhxDQPiSfZgHeTiBU_IMG_9040-300x139.jpeg\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/6oLhhxDQPiSfZgHeTiBU_IMG_9040-300x139.jpeg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/6oLhhxDQPiSfZgHeTiBU_IMG_9040-800x371.jpeg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/6oLhhxDQPiSfZgHeTiBU_IMG_9040-640x297.jpeg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/6oLhhxDQPiSfZgHeTiBU_IMG_9040.jpeg 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\t#SatShow Insights \u2013 Day 2<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 339:  \/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\/UWMnJywzRmClGc5rzCnE_40522766652_2ef0c730d5_k-300x200.jpg\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" loading=\"lazy\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/UWMnJywzRmClGc5rzCnE_40522766652_2ef0c730d5_k-300x200.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/UWMnJywzRmClGc5rzCnE_40522766652_2ef0c730d5_k-800x533.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/UWMnJywzRmClGc5rzCnE_40522766652_2ef0c730d5_k-640x427.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/UWMnJywzRmClGc5rzCnE_40522766652_2ef0c730d5_k.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\tBig or Small: Traditional Rocket Companies Will Launch Them All<br \/>\n\t\t<\/h3>\n<p><!-- .post-snippet --><\/p>\n<hr class=\"my-3\">\n<p>\t\t\t\t\t<!-- post id 338:  \/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=\"221\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/0Myt9cCLTC8O7nX5ksiw__MG_9606-300x221.jpg\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" loading=\"lazy\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/0Myt9cCLTC8O7nX5ksiw__MG_9606-300x221.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/0Myt9cCLTC8O7nX5ksiw__MG_9606-800x591.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/0Myt9cCLTC8O7nX5ksiw__MG_9606-640x473.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/0Myt9cCLTC8O7nX5ksiw__MG_9606.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\tContent Providers on the Future of OTT, IOT and High-Stakes Markets<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 341:  \/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=\"180\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/eYXZAOqvQ6ahnMi2EZF0__MG_9297-300x180.jpg\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" loading=\"lazy\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/eYXZAOqvQ6ahnMi2EZF0__MG_9297-300x180.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/eYXZAOqvQ6ahnMi2EZF0__MG_9297-800x479.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/eYXZAOqvQ6ahnMi2EZF0__MG_9297-640x383.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/eYXZAOqvQ6ahnMi2EZF0__MG_9297.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\tNew Economic Realities Will Impact Constellation Buildout<br \/>\n\t\t<\/h3>\n<p><!-- .post-snippet --><\/p>\n<hr class=\"my-3\">\n<p>\t\t\t\t\t<!-- post id 340:  \/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=\"190\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/wKfRMmOpRlOks0GuZJJS__MG_9669-300x190.jpg\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" loading=\"lazy\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/wKfRMmOpRlOks0GuZJJS__MG_9669-300x190.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/wKfRMmOpRlOks0GuZJJS__MG_9669-800x508.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/wKfRMmOpRlOks0GuZJJS__MG_9669-640x406.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/wKfRMmOpRlOks0GuZJJS__MG_9669.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\tSmallsats Face a Lack of Rides to Space<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 336:  \/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=\"199\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/7oleYhcaR26aYzMuc4aD__MG_0014-300x199.jpg\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" loading=\"lazy\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/7oleYhcaR26aYzMuc4aD__MG_0014-300x199.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/7oleYhcaR26aYzMuc4aD__MG_0014-800x531.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/7oleYhcaR26aYzMuc4aD__MG_0014-640x425.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/7oleYhcaR26aYzMuc4aD__MG_0014.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\tWhile Demand is There, Operators Need to Better Understand End Users<br \/>\n\t\t<\/h3>\n<p><!-- .post-snippet --><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The charts are pretty grim when it comes to the share prices of major satellite operators. During a Monday morning discussion between financial analysts at the SATELLITE 2018 Conference &amp; Exhibition, Northern Sky Research (NSR) President Christopher Baugh pointed out that, despite the industry\u2019s massive technological advancements, investors are generally much less bullish on Fixed [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":65863,"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-65861","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\/65861"}],"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=65861"}],"version-history":[{"count":0,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/65861\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media\/65863"}],"wp:attachment":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media?parent=65861"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/categories?post=65861"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/tags?post=65861"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}