Satellite operators’ business models are going to change due to the multi spot beam architecture of HTS. Satellite operators will need to focus not just on space but also on ground infrastructure. This new focus will enable their service provider (SP) customers to cost effectively access HTS via a managed service model. We predict that satellite operators will change their business models to sell Mbps rather than MHz. In my last blog I considered why, but in this one I would like to discuss what impact this may have.
How Do You Sell Mbps?
RSCC recently told SatTV Week that they are an “operator of infrastructure” during an interview at CommunicAsia 2014.
This demonstrates to me that satellite operators understand that they need to sell more than just a satellite’s capability in order to ultimately sell Mbps. Satellite operators must sell what’s on the ground, too; the quality, security and reliability of the ground infrastructure are significant. The ground elements are a critical part of the overall network architecture. Therefore, satellite operators will be responsible for the entire network if they are selling Mbps via a managed service model.
Could The VNO Model Be A Stepping Stone?
Satellite operators can control how their capacity comes to market by choosing one of four business models:
- Vertically Integrated Model – (Mbps)
- Managed Services Model – (Mbps)
- Virtual Network Operator Model – (MHz)
- Hub Co-location Model – (MHz)
Although all four business models are in use today, I made the case in my last blog that satellite operators that are selling MHz will gradually transition to a managed service model based on selling Mbps. However, the VNO model could serve as transition point for some. Read More