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FSS Capacity Pricing Trends Maximize

FSS Capacity Pricing Trends

An assessment of the current dynamics for the pricing of satellite capacity. | Published May 2018

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FSS Capacity Pricing Trends considers a set of regional markets, together with a specific review of the mobility and government vertical markets.

Highlights from the report

The combination of oversupply from the addition of traditional satellite capacity in certain areas along with the unrelenting rollouts of HTS capacity has resulted in new pricing references in most geographies and market segments across the FSS sector. While data-oriented markets have been the most exposed, with double-digit capacity pricing declines over the last 2-3 years, video applications have also been impacted. Other factors have included consolidation among service companies in certain segments, resulting in larger capacity buyers with more bargaining power, and heightened competition from a growing pool of national satellite operators.

While prices lower than $1,000/MHz/month have been reported, even for traditional (regular) capacity, in some geographies or use cases, prices of up to $7,000 can still be found. Still, reference regular capacity pricing has now fallen below $2,500 for data applications in nearly all regions, while pricing for HTS capacity primarily stands between $100-$500/Mbps/month, with the exception of certain premium services.

The market could see a continuous erosion in the average revenue per capacity unit being sold (ARPU), even if (spot) pricing partly stabilizes. In the longer term, the availabilityof VHTS systems, with capacity in the range of several hundred Gbps of capacity supply to 1Tbps, and of NGSO constellations will likely have a new impact on pricing, defining new reference rates. Still, such systems would only cause progressive impacts as most systems would be deployed after 2020.


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