Intelsat Sees Epic HTS Constellation Offsetting Network Services Pricing Woes

Network services price competition is proving to be a major hurdle for Intelsat, though the satellite company hopes its Epic high-throughput satellite constellation starts offsetting those declines, company officials said Monday as they announced Q4 results. The company said preliminary revenue for 2015 was $2.35 billion, while 2016 is expected to bring revenue of $2.14 billion-$2.2 billion, with the declines coming from a number of network services contract renewals, CEO Stephen Spengler said on a conference call. The company's first high-throughput Epic satellite -- Intelsat 29e -- launched in January, with three more set to launch later this year, he said. The company signed nine Epic agreements in Q4, most of them with current customers transitioning from current satellites to the Epic constellation, Spengler said. But, he said that "we do see Epic as not just a transitionary platform but a growth platform." Spengler said the company is developing new platforms to take advantage of the high-throughput capabilities, pointing to Intelsat's sponsorship of a cross-country drive of a Kymeta-connected car (see 1512160011) that will be on display at Satellite 2016 in March at the Gaylord National Convention Center in National Harbor, Maryland. Applications like automotive connectivity and IoT are "where we can create value for our customers," Spengler said. Intelsat stock closed Monday at $2.72, down 9.6 percent.