Industry Analysis & Industry Trends
Despite volatile revenue growth during the past five years, the Satellite Telecommunications Providers industry will likely experience stable and strong demand in the next five years. Since 2007, development of the direct-to-home TV market, expansion of broadband internet services and advances in digital technology have driven demand. Revenue will likely continue growing during the five years to 2017 as tight lending conditions ease and new high throughput satellites are set to be launched... purchase to read more
Industry Report - Industry Investment Chapter
Industry operators deploy a huge amount of capital in building and maintaining infrastructure and satellite systems for the provision of telecommunication services by satellite. Building and launching a single satellite can cost from $250.0 million to $300 million. While the initial cost is very high, the marginal cost of operating satellites over the long term is relatively low. This high fixed cost base means the industry's profitability is particularly sensitive to changes in demand. One indication of this high capital intensity is given by the ratio of capital costs to labor costs. Wages are used as a proxy for labor, while depreciation is used as a proxy for capital. In 2012, for every dollar spent on labor, $0.93 is expected to be consumed by depreciation... purchase to read more