'Tough Road Ahead' for FSS With Revenue, Contract Length Pressures, NSR Says
Fixed satellite service (FSS) operators are likely to face declines in contract durations, revenue and margins through at least 2020, until a revenue rebound occurs, blogged Northern Sky Research analyst Gagan Agrawal Sunday. He said the decline in video and…
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non-video FSS contract duration over the past three years mirrors price declines over the same span, with the increase in capacity ensuring those shorter contracts aren't leading to higher pricing. He said the FSS company market cap and share prices "are precariously placed" for the next one to two years and it's unclear whether next-generation high throughput and non-geostationary satellites will boost revenue, but "certainly it is a tough road ahead for the FSS segment."