{"id":65873,"date":"2018-03-14T01:34:18","date_gmt":"2018-03-13T17:34:18","guid":{"rendered":"https:\/\/wp-productionenv-bjg9h2g2bgg5b8aa.southeastasia-01.azurewebsites.net\/news\/the-trials-and-tribulations-of-hts-finance\/"},"modified":"2018-03-14T01:34:18","modified_gmt":"2018-03-13T17:34:18","slug":"the-trials-and-tribulations-of-hts-finance","status":"publish","type":"post","link":"https:\/\/starpath.global\/news\/the-trials-and-tribulations-of-hts-finance\/","title":{"rendered":"The Trials and Tribulations of HTS Finance"},"content":{"rendered":"<p>The satellite industry is going through unprecedented times and this is being reflected in the risks that the investment community are prepared to take on new services and constellations. On Monday\u2019s panel session \u201cFinancing HTS Growth \u2013 GEOs, LEOs and MEOs,\u201d this was further explored. The panel agreed that it is a rather confusing time for investors.<\/p>\n<p>\u201cFrom a research perspective, the emergence of High Throughput Satellites (HTS) is pretty transformative. The fact is that space technology is moving very fast and the industry is still trying to figure out which technology to invest in,\u201d said Chris Quilty, president of Quilty Analytics. \u201cThere is a lot of caution and confusion in the market but no-one can doubt that this technology has taken hold.\u201d<\/p>\n<p>\t\t\t\t<img loading=\"lazy\" width=\"300\" height=\"225\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2018\/03\/EirqIqcQSUfMyCDBsilA_ShowDaily18_Cover_Day2_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\/EirqIqcQSUfMyCDBsilA_ShowDaily18_Cover_Day2_DGTL-300x225.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2018\/03\/EirqIqcQSUfMyCDBsilA_ShowDaily18_Cover_Day2_DGTL-800x599.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2018\/03\/EirqIqcQSUfMyCDBsilA_ShowDaily18_Cover_Day2_DGTL-640x480.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2018\/03\/EirqIqcQSUfMyCDBsilA_ShowDaily18_Cover_Day2_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 2 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>This inevitably manifests itself in the CAPEX cycle. But it doesn\u2019t seem that there is problem with demand. Grant Barber, CFO of Hughes, pointed out that the demand and appetite from customers is growing exponentially and is largely based upon the demand for video downloads. The challenge is to correctly assess how much more capacity is required.<\/p>\n<p>Hughes sees capacity being taken up very quickly in the U.S., but what about other markets where incomes are lower?<\/p>\n<p>\u201cWe see the exact same trends with most people taking lower plans but then moving to higher end plans,\u201d said Barber. Barber continued. Hughes is already providing HTS services across Brazil and Colombia and is looking to move into Panama and Costa Rica later in 2018.\u201d<\/p>\n<p><script>var AIAD_fcd45f981d570e35cee941b23edc69c7_6a68377952c2b;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_6a68377952c2b = googletag.defineSlot('\/987\/satellitetoday.com\/via-satellite-digital-issue-ads', [ [600, 300], [300, 250], [970, 250] ], 'div-gpt-ad-1774631144891- 0-6a68377952c2c').defineSizeMapping(AIMAP_21fe3bcfb86a8660aba4e721ee9338f3).setCollapseEmptyDiv(true).addService(googletag.pubads());   });<\/script><script>googletag.cmd.push(function() { googletag.display('div-gpt-ad-1774631144891- 0-6a68377952c2c'); });<\/script><\/p>\n<p>Joshua Marks, CEO of Global Eagle Entertainment, said the market is at the peak of individual data consumption but there is a lot of unintentional usage as there is a great deal of application refreshing going on. He predicts that people generally will accelerate in their smartphone usage as more and more people connect. However, he emphasized the fact that airlines, for example, will want to deliver services at the price point that people are prepared to pay. This is why business models are going to be so important moving forward with HTS. There must be the right combination of adoption rate and price point.<\/p>\n<p>In terms of the enterprise market, HTS constellations such as LeoSat are going for the premium segment of the market, delivering enterprise-grade connectivity to those that require high security and low latency to deliver mission-critical services to those in more remote areas. This is a premium service.<\/p>\n<p>So, how far away is the market from hitting terrestrial price points? Barber believes that Hughes\u2019 HTS offering competes quite well with terrestrial since the company does not attempt to compete in urban areas.<\/p>\n<p>So where is investment coming from? Securing investment is difficult for any start-up satellite company, especially the LEO constellations that have no precedent. \u201cIt needs to be broken up into milestones,\u201d said Mark Rigolle, CEO, Leosat. \u201cInitially, the first round is the most difficult to find, and as a company moves through the process of B, C and D rounds the process gets easier,\u201d Mark Rigolle, CEO, Leosat explained.<\/p>\n<p>Investment in the initial rounds is often required from venture capitalists. However, after this stage, funding comes from other sources; some large infrastructure companies, and even pension funds are looking into the satellite industry as an alternative place to put their cash. Rigolle sees a change in the mix of investors.<\/p>\n<p>Quilty highlighted that the fact that high-profile entrepreneurs, such as Elon Musk, have shone a light onto the industry will encourage investors to follow. \u201cSuccess begets success,\u201d he said. \u201cOnce you have your first successful exit of a LEO constellation, it will make it easier for everyone else.\u201d<\/p>\n<p>So, perhaps the point is that these HTS constellations need more time to evolve and develop and to gain the confidence of the investors. However, it\u2019s still too early. Plus, different systems will be suited to different applications. What is good for enterprise will not be good for the consumer and investors will need to fully understand the nuances of each so that they know exactly where their investment is going. <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 334:  \/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=\"201\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/ZmVUz4z0T7mijICUJEff_Shotwell202017-300x201.jpg\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/ZmVUz4z0T7mijICUJEff_Shotwell202017-300x201.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/ZmVUz4z0T7mijICUJEff_Shotwell202017-800x537.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/ZmVUz4z0T7mijICUJEff_Shotwell202017-640x430.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/ZmVUz4z0T7mijICUJEff_Shotwell202017.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\t2017 Satellite Executive of the Year: Gwynne Shotwell, President and COO, SpaceX<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 332:  \/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=\"219\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/MwIIm7xZQ0qvQi8JioIC_Story2_MG_9524-300x219.jpg\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" loading=\"lazy\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/MwIIm7xZQ0qvQi8JioIC_Story2_MG_9524-300x219.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/MwIIm7xZQ0qvQi8JioIC_Story2_MG_9524-800x583.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/MwIIm7xZQ0qvQi8JioIC_Story2_MG_9524-640x467.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/MwIIm7xZQ0qvQi8JioIC_Story2_MG_9524.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\tExecution Key for Longevity of Smallsats in the Space Economy<br \/>\n\t\t<\/h3>\n<p><!-- .post-snippet --><\/p>\n<hr class=\"my-3\">\n<p>\t\t\t\t\t<!-- post id 331:  \/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\/iIrN3usJSNanbRXK0s5Z_IMG_9042-300x225.jpg\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" loading=\"lazy\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/iIrN3usJSNanbRXK0s5Z_IMG_9042-300x225.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/iIrN3usJSNanbRXK0s5Z_IMG_9042-800x600.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/iIrN3usJSNanbRXK0s5Z_IMG_9042-640x480.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/iIrN3usJSNanbRXK0s5Z_IMG_9042.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 Constellation Prospects Dominate Opening Panel at SATELLITE 2018<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 335:  \/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=\"198\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/bwII8ZCGQtOIxwisnBj2_SatShowInsights_MG_9294-300x198.jpg\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" loading=\"lazy\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/bwII8ZCGQtOIxwisnBj2_SatShowInsights_MG_9294-300x198.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/bwII8ZCGQtOIxwisnBj2_SatShowInsights_MG_9294-800x527.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/bwII8ZCGQtOIxwisnBj2_SatShowInsights_MG_9294-640x422.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/bwII8ZCGQtOIxwisnBj2_SatShowInsights_MG_9294.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\tSatShow Insights \u2013 Day 1<br \/>\n\t\t<\/h3>\n<p><!-- .post-snippet --><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The satellite industry is going through unprecedented times and this is being reflected in the risks that the investment community are prepared to take on new services and constellations. On Monday\u2019s panel session \u201cFinancing HTS Growth \u2013 GEOs, LEOs and MEOs,\u201d this was further explored. The panel agreed that it is a rather confusing time [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":65876,"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-65873","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\/65873"}],"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=65873"}],"version-history":[{"count":0,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/65873\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media\/65876"}],"wp:attachment":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media?parent=65873"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/categories?post=65873"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/tags?post=65873"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}