Pending NGSOs Could Cost $100 Billion, AlixPartners Says, Warning Capacity Could Exceed IoT Demand
Non-geostationary orbit constellations pending before the FCC would cost between $50 billion and $100 billion if they all came to fruition, AlixPartners reported Thursday. That sheer magnitude of investment makes it unlikely all the constellations and their 16,000 satellites will…
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go up, it said. Over the next five years, expect to see multiple satellites put in orbit with terabyte capabilities, while satellite average revenue per user will likely stay flat as demand for satellite broadband is offset by ongoing declines in price per byte, it said. It also said satellite bandwidth capacity over the next five years could outpace demand as adoption of new applications like IoT and in-flight connectivity will be slower than expected. It recommended satellite operators focus on affordability and add services beyond just communications capability.