While the overall economic and political environment remains uncertain, FSS and MSS satellite operators recorded robust revenue growth in 2011 to around $13 billion, with still significant differences among operators. The satellite value chain will continue to evolve over the coming years. The world’s leading operators will deploy 25 satellites as a result of recent investment decisions aiming at reinforcing their growth in emerging regions. In addition to the top five operators, nine regional operators report revenues higher than $100 million while only six reported revenues at such a level five years ago. Many regional players are now also in the midst of aggressive expansion strategies with plans for several new satellites.
Increased competition could create an imbalance between capacity supply and demand in certain areas. Newcomer operators looking to maximize their fill rates will put pressure on capacity pricing. As a result, operators looking at new satellite investments may have higher acceptance of technology risks in order to build a competitive advantage. M&A transactions should be seen at different levels of the satellite value chain. A strong potential for M&A transactions exists in the fragmented satellite service sector and transaction opportunities also exist in the satellite manufacturing industry.
The above issues will be discussed and debated during three days of intense panel discussions and business meetings at Euroconsult’s flagship event, the World Summit for Satellite Financing. This 16th summit will take place from September 11th through 13th at the Westin in Paris, France.
The World Summit for Satellite Financing is one of three events under Euroconsult’s umbrella event, the World Satellite Business Week, which also includes the Symposium on Market Forecasts and the Symposium on Earth Observation Business.
