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MSS still growing but must adapt, says Euroconsult Featured

The future of the Mobile Satellite Services (MSS) industry depends on how fast operators can adapt to new market conditions, according to the latest report from Euroconsult.

{mprestriction ids="1"}Mobile Satellite Communications Markets Survey: Prospects to 2024, outlines the challenges facing the MSS sector, including VSAT growth, troop withdrawals, government cutbacks and testing economic conditions in maritime. Despite these tough conditions, the MSS sector continues to grow, with 2014 revenues reaching around $1.3 billion, a 5 per cent increase on 2013.

According to Euroconsult, the active MSS terminal base grew at a CAGR (compound annual growth rate) of 9 per cent over the past five years, and there are currently over 3.3 million active MSS terminals deployed globally.

“The growth is mostly from lower-end markets and due to an increase in airtime prices by certain operators,” said Wei Li, senior consultant at Euroconsult and editor of the report.

“Both the service quality and affordability of mobile VSATs are improving continuously; they are gaining ground in high-end markets, particularly in energy, maritime and commercial aviation.”

Euroconsult believes the launch of next generation MSS constellations, such as Iridium NEXT, will alter the market landscape. It expects competition to expand beyond the traditional L-band community to include FSS operators such as Intelsat, SES, Telenor and others.

By 2024, the report predicts that over 6.8 million terminals will be in operation, and wholesale revenues will grow at a ten-year CAGR of 4 per cent from 2014 to 2024.

“Land should be the largest market segment by 2024 with more than $900 million in wholesale service revenues, while the aeronautical segment will be the fastest growing vertical market in terms of revenue, with a 9 per cent growth in service revenues over the coming decade,” said Mr Li.{/mprestriction}

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