Satellite operators are launching more high-powered communications rigs into space, with two more set to join about two-dozen already in orbit by the end of the year, crowding the skies and threatening the industry’s fat profit margins.
The new orbiters being launched at a cost of as much as $500 million each are forcing established operators to embark on costly upgrades of their fleets at a time when their business outlook has darkened.
“There’s certainly a lot of supply coming online,” said Blaine Curcio, senior analyst at Northern Sky Research. “Operators are launching huge satellites with overcapacity.”
