Satcom Consolidation Needed, but SpaceX Is a Barrier: Access Partnership
Pointing to SES' pending purchase of Intelsat (see 2404300048), Access Partnership Growth Director Matthew McDermott wrote Thursday that consolidation "is the only way" legacy geostationary orbit operators can "survive" in the face of SpaceX competition and the declining demand for…
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video service. Without consolidation, new revenue sources are needed and costs must be managed more aggressively, he wrote. "OneWeb and Eutelsat have already come together, and now attention turns to who is next," McDermott noted. There is worry investors will get cold feet about such deals, "concerned that no one can stand up to SpaceX," he added. Creation of the Mobile Satellite Services Association, with members launching a jointly owned network, is another approach, he wrote. "Expect to see more radical solutions as companies fight to secure their corner in an evolving marketplace."