Satellite Operators Increasingly Making 'Big, Potentially Risky Plays,' NSR Says

Satellite operator revenue dropped by close to 3 percent in 2016 largely on data market pricing, while some operators dug into their cash on hand for acquisitions or paying down debt, Northern Sky Research said in a news release Tuesday. "Operators are making big, potentially risky plays," including SES taking full ownership of O3b and RR Media, OneWeb combining with Intelsat, Telesat's move toward low earth orbit high-throughput satellites and the proposed geostationary high-throughput satellite constellation spearheaded by APT Satellite, it said. The researcher said 2016 saw satellite operators try to compete better in international data and mobility markets through big discounts on bulk contracts.