FROM THE EDITOR'S DESK
VSAT Success Depends on Up-to-Date Market Perceptions
With VSAT providers offering more and more services and the number of competitors in the sector shrinking, it is very likely that this time next year, the VSAT playing field will be made up of companies who went back to business school basics in developing their 12-month strategy.
Right now, analysts are calling for favorable long-term trends in the international enterprise VSAT industry. Growth in broadband VSAT networking is pushing growth in capacity leases, specifically in Ku-band. NSR projects that the combined broadband services segment could add almost $2.2 billion in new revenues to the industry by 2019.
The companies who will get enjoy this growth era will be the ones who develop technology and services that make sense. The two main factors in many business models are well known – cost and demand. While the simple idea of service flexibility and innovation fueled the early growth of the VSAT industry, the VSAT buyer is now expecting to spend less money for more services. To use a common example, let's take a look at Apple's iPad. The idea of the debut model is based on the novelty of its form-factor. However, when Apple starts to augment the iPad to meet the requirements of a larger market (for me, it's a USB port), competitors are going to find themselves left behind. I'm surprised that other companies in the PC market haven't taken advantage of this opportunity to target markets that Apple forgot.
It may seem like business school 101, but the fast-moving satellite technology market gives little time for companies that lose touch with those basic elements to catch up.
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