NSR's Satellite Capacity Pricing Index, 5th Edition (2019) continues as the leading industry resource for satellite capacity pricing worldwide. Built on 15+ years of pricing research and synthesized with inputs from top strategic leaders in the satellite operator and service provider industry, NSR's Satellite Capacity Pricing Index, 5th Edition (2019) delivers thought-provoking insights into how multiple factors affect pricing. Building on a per region and per application analysis, this report presents a quantitative evolution across the market until 2020.
NSR's trailblazing analysis focuses on a key burning question: will the industry reach price commoditization and what are the consequences thereof. Price decline has been the biggest driver for the satellite industry, triggering business model changes and enabling scale via acquisitions. Surges in HTS capacity coming online accelerate this decline. This state of the market presents key areas of concern for operators around quantifying the market index lease price and what range of pricing can be expected.
On the opposite side, this trend also presents double-digit growth opportunities for service providers to buy in bulk and capture latent demand for ubiquitous connectivity. This bi-polar fight in the market raises the old question of managed services vs. pure play lease business model sustainability, which the current report captures through various price points. NSR's Satellite Capacity Price Index, 5th Edition (SCPI5) analyzes both viewpoints, backs it up with a price index, price range, discount/premium price factors dissection, 1-year forecast price and benchmarks a Global Mean Pricing Index (GMPI) to showcase various current and evolving strategies and provides recommendations on the future of business in this industry.
SCPI5 answers THE key questions impacting satellite capacity pricing dynamics:
- What is the rate of the price decline? How long does it persist?
- How fast is the decline for GEO-HTS capacity anticipated, and will LEO capacity have any impact in the medium to long term?
- How should operators change strategy based on pricing trends, and should they account for revenue optimization through spot pricing insights?
- What are the current backhaul and consumer broadband prices in the market, and when can stability be expected?
- How are various verticals covering or diverging on pricing, and what has been the historical percentage drop in pricing? Will this continue to be the case?
- What strategies are operators adopting to limit the price decline?
- How stable is the video market in terms of pricing?
BOTTOM LINE: What is the current state of the market, how is it expected to change, and what are NSR's recommendations?
NSR's SCPI5 combines base price and factor-based inputs from regional operators, Big Four operators, and service providers, to provide an even, balanced and well-rounded view of pricing within the industry. Expanding on NSR's Q1, 2018 edition of this study, this most recent edition provides the historical price index since 2016 with forecast until 2020, and a global mean price index along with the current spot prices/range.
NSR's SCPI5 includes pricing matrices on traditional FSS C-band, FSS Ku-band, and GEO-HTS and standalone Ka-band HTS capacity for Q1 2019, segmented regionally across 10 regions, and by applications across Video Distribution, DTH, Enterprise, Trunking/Backhaul, Broadband, Mobility and Government-Military segment. Beyond this, NSR quantifies a range of pricing with appropriate standard deviation backed by anchor criteria, thus providing bound estimates for various combinations of factors such as contract duration, amount of capacity (small/large customer), fill rates, and customer retention discounts. In addition to pricing ranges, NSR also includes significant qualitative analysis on both existing prices and the market expectations one year into the future.
NSR's SCPI5 features the continuation of the pricing tool and pricing forecast model used in 4th edition to analyse both the price influencing factors, and the econometric changes in the industry to appropriately model the decline of prices in 2019-2020. The 18 factors used across four verticals help untangle key insights around discount and premium pricing ranges, and the % change from last year reproduces the dynamics that industry has witnessed.
Due to this elaborate dissection of discount pricing, several operator strategies and global mean pricing index can be interpreted well. The study uses inputs from NSR reports including, but not limited to Global Satellite Supply and Demand, Satellite Operator Financial Analysis, VSAT and Broadband Satellite Markets, and Government & Military Satellite Communications.
Table of Contents
- Global Mean Price Index
- Market Dynamics and Pricing Forecast
- Contents of the Report
- 1. Chapter Introduction
- 2. Factors Influencing Price
- 3. Price Factors 1 (Video and Data)
- 4. Price Factors 2 (Mobility and Gov/Mil)
- 5. Introduction to NSR Pricing Model
- 6. Value Chain - DTH and Video Distribution
- 7. Value Chain - Data, Backhaul and Consumer Broadband
- 8. Value Chain - Mobility (Maritime & Aero)
- 9. Operator Strategies to Optimize Profit
2. Price Index, Historical Pricing & Range
- 1. Pricing Index and Range - Overview
- 2. Video Distribution: C and Ku band
- 3. DTH: Ku band
- 4. Enterprise Data: C and Ku band
- 5. Backhaul and Trunking: C and Ku band and GEO-HTS
- 6. Consumer Broadband: GEO-HTS
- 7. Mobility: C and Ku band
- 8. Mobility: GEO-HTS
- 9. Gov-Mil: C and Ku band and GEO-HTS
3. Price Forecast & Commentary
- 1. Chapter Introduction
- 2. Pricing Forecast - Overview
- 3. Pricing Forecast - Video Distribution and DTH
- 4. Pricing Forecast - Data/Trunking/Backhaul FSS/HTS
- 5. Pricing Forecast - Consumer Broadband GEO-HTS
- 6. Pricing Forecast - Mobility FSS/HTS
- 7. Pricing Forecast - Gov-Mil FSS/HTS
- 8. Pricing Commentary
List of Exhibits
- Video and DTH: Global Mean Index Price
- Mobility: Global Mean Index Price
- Enterprise Data: Global Mean Index Price
- Backhaul and Broadband: Global Mean Index Price
Price Index, Historical Pricing & Range
- Video Distribution C-band Price Index and Range
- Video Distribution Ku-band Price Index and Range
- Video Distribution C-band Pricing: 2016-2019
- Video Distribution Ku-band Pricing: 2016-2019
- DTH Ku-band Price Index and Range
- DTH Ku-band Hotspot Pricing: 2016-2019
- DTH Ku-band Pricing: 2016-2019
- Enterprise Data C-band Price Index and Range
- Enterprise Data Ku-band Price Index and Range
- Enterprise Data C-band Pricing: 2016-2019
- Enterprise Data Ku-band Pricing: 2016-2019
- Trunking C-band Price Index and Range
- Backhaul Ku-band Price Index and Range
- Backhaul/Data GEO-HTS Price Index and Range
- Backhaul/Data GEO-HTS Pricing: 2016-2019
- Consumer Broadband GEO-HTS Price Index and Range
- Consumer Broadband GEO-HTS Pricing: 2016-2019
- Mobility C-band Price Index and Range
- Mobility Ku-band Price Index and Range
- Mobility C-band Pricing: 2016-2019
- Mobility Ku-band Pricing: 2016-2019
- Mobility GEO-HTS Price Index and Range
- Mobility GEO-HTS Pricing: 2016-2019
- Gov/Mil C-band Price Index and Range
- Gov/Mil Ku-band Price Index and Range
- Gov/Mil GEO-HTS Price Index and Range
Price Forecast & Commentary
- Video Distribution C-band- Price Forecast
- Video Distribution Ku-band- Price Forecast
- DTH Ku-band- Price Forecast
- Enterprise Data C-band- Price Forecast
- Enterprise Data Ku-band- Price Forecast
- Trunking C-band- Price Forecast
- Backhaul Ku-band- Price Forecast
- Backhaul/Data GEO-HTS- Price Forecast
- Consumer Broadband GEO-HTS- Price Forecast
- Mobility C-band- Price Forecast
- Mobility Ku-band- Price Forecast
- Mobility GEO-HTS- Price Forecast
- Gov/Mil C-band- Price Forecast
- Gov/Mil Ku-band- Price Forecast
- Gov-Mil GEO-HTS- Price Forecast