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Decline expected in maritime L-band – report

The market for maritime L-band services is set to decline over the next decade, and may force network operators to reposition their offerings to target smaller vessel customers and Internet of Things (IoT) systems, according to the latest report from satellite communications research consultancy Euroconsult.

{mprestriction ids="1,2"}While single-digit growth is still expected for the global mobile satellite (MSS) market despite lower ARPUs (average revenue per user) over the period, maritime L-band wholesale revenues are expected to decrease with a -2 per cent compound rate over the next ten years, the company said in its ‘Prospects for L-Band, IoT & M2M Markets’ report.

This will be driven by the continuing migration of vessel operators to VSAT services in the medium to high-end maritime markets, with the low ARPUs still generated from small boats not enough to offset that churn.

“Increasing competition from VSAT mobile solutions, due to more efficient equipment and lower capacity costs, is expected to weigh on MSS’s market share in the high-end, high-ARPU markets,” said Pacôme Révillon, CEO of Euroconsult.

“MSS operators will thus have to review their positioning and address new segments less addressable by VSAT solutions, such as smaller classes of ships, aircraft, not to mention potential upsides related to connected cars and IoT.”{/mprestriction}

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