As data flow, communications and commerce increasingly moves online, there will continue to be innovations in telecommunications technology both on the ground and in space.
And to meet the growing demand for satellite network capacity, satellite operators should be well positioned to take advantage of the global market.
However, according to a report by Moody’s Investors Service that was released yesterday, the “accelerating pace of change and uncertainty around direction of new technologies” has increased business risks for global satellite services providers.
Bill Wolfe, Moody's Senior Vice President and co-author of the report, said: "For satellite operators, the timing and potential to monetize higher demand for satellite services remain highly uncertain."
He also said he sees “no clearly identifiable winning new technologies” meaning that “financial flexibility looks increasingly more important than any particular technology”.
According to the report, “satellite services companies’ strategic direction and financial results will be influenced by the same technological and financial forces.”
The research report, titled "Satellite Services - Global: Rapidly evolving technologies increase business risks for satellite companies," also argues that companies who face pre-existing financial stress will, to their detriment, be less able to pursue alternative investment strategies.
Although the report says it does not expect business conditions or models to “change abruptly in the next year or two”, Moody’s expects these firms to increasingly form joint ventures or be involved in mergers and acquisitions.
Co-author Alejandro Núñez, a Moody's VP- Senior Analyst said: "Many legacy capabilities have long technology tails, and we don't expect any one technology to emerge as a category killer.
"That said, because of their ability to provide individual connections to the internet, very-high/ultra-high throughput, steerable spot beam transmission technologies appear to be the future for much of the market, and will be deployed in multiple orbits using multiple frequencies."
