Yankee Group: Satellite Providers Need New Business Model

According to a new study released by The Yankee Group, the new broadband satellite providers need to change their business models if they are to succeed. The Boston- based market research firm says “the vertically integrated, capital-intensive business model of the past is ill suited” to address certain market challenges, including overcapacity, price compression and commoditization, because the model leaves the satellite companies unable to flexibly react to the market challenges. The group recommends the new wave of broadband satellite providers find ways to lower capital investments and expand demand beyond traditional markets.