9th December 2013: Concern has been raised throughout the satellite industry that the vast amount of new HTS (High Throughput Satellite) supply coming to market*, will swamp existing C- and Ku-band transponder demand leading to a global drop in C/Ku pricing and negatively impact revenues for legacy FSS services. Recent research from NSR concurs that some existing C- and Ku-band transponder demand (for applications like backhaul, trunking and VSAT networking) will suffer in the coming years due to the arrival of new HTS systems. There will also be significant transponder price pressure for certain applications and/or satellites if some operators try to compete using classic C/Ku transponders on a pure price basis with the new HTS capacity. NSR also argues, based on data from its Global Assessment of Satellite Supply & Demand 10th Edition study, that net/net the migration to HTS services is advantageous to the satellite industry in terms of real revenue gains in the coming ten years.
*Forecasted to increase by 1.5 Tbps by 2022. Source: NSR