Aerospace and Electronic Systems - May 2019 - 70

Review of High Throughput Satellites: Market Disruptions, Affordability-Throughput Map, and the Cost Per Bit/Second. . .

Figure 5.
Adverse consequences of HTS for satellite operators [14]-[17].

of an HTS acquisition/investment. Figure 6 provides a summary of some of the current positions on this matter. The
consensus tilts toward a recognition of a risk of oversupply.
One important consequence of these disruptions and
changing market conditions for satellite operators is that
while HTS investments can be highly successful and
profitable, there is no guarantee that all of them will be.
The excitement for the massive availability of throughput
has to be tempered by careful considerations of these
market uncertainties, the different skillset needed to bring
70

HTS services to the market, and the higher costs of
customer acquisition for broadband services compared
with those of traditional broadcast.
With these new market conditions, traditional satellite
operators are likely to become more parsimonious with
capital expenditure (CAPEX). This will have significant
ripple effect upstream the space industry value chain,
especially on satellite manufacturers. We anticipate that
the likely consequences of HTS on satellite manufacturers
will include the following:

IEEE A&E SYSTEMS MAGAZINE

MAY 2019



Aerospace and Electronic Systems - May 2019

Table of Contents for the Digital Edition of Aerospace and Electronic Systems - May 2019

Contents
Aerospace and Electronic Systems - May 2019 - Cover1
Aerospace and Electronic Systems - May 2019 - Cover2
Aerospace and Electronic Systems - May 2019 - Contents
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