NSR Analyst Sees Satcom Consolidation

Satellite communications faces a period of consolidation, with vertical integration and horizontal solidification going hand in hand, Northern Sky Research analyst Joseph Ibeh blogged Tuesday. Driving it is the increased amount of capacity, with operators relying on more sales to compensate for price erosion, plus declining video revenue and the competitive threat from non-geostationary orbit satellites, he said. He said smaller companies with cash problems will need to combine or declare bankruptcy.