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NGSOs Carry Big Potential, Big Warning Flags, NSR Says

Non-geostationary orbit (NGSO) annual capacity revenue should hit $4 billion by 2027, as their low latency and high bandwidth per terminal should open the door to new markets to satellite, Northern Sky Research said Tuesday. However, the cost of such constellations is huge and the revenue drivers might not be enough to recoup initial investments, meaning risk of possible price disruptions for the whole satellite industry if NGSOs use capacity to poach customers from legacy operators, NSR said. It said even the constellations that have attracted significant funding lack a clear path to service and operator focus on technology development has to shift to commercialization.