The investment community likes to avoid risk, and thus loves the satellite industry for its stability and predictable revenues. However, the impression one got the other week at Satellite 2011 in Washington was that a lot of the future growth in the sector will come from “disruptive technology,” and these new, innovative applications will add risk to the industry’s outlook.
The latest from Richard Roithner
The global satellite industry is in the midst of one of the largest capital spending binges in its history, building and launching new spacecraft to replace fleets that have been in orbit since the 1990s and earlier. But when the fleet is replaced in a few years, how will global satellite operators continue to spend their healthy cash flows? To be honest, no one is quite sure.