Novaspace, the space consulting and market intelligence firm, has released the 7th edition of its FSS Capacity Pricing Trends report, analysing the shift in satellite capacity pricing as the industry moves from scarcity to abundance. As new-generation satellites drive down costs, traditional wholesale leasing models are under increasing pressure. Operators are responding by adopting value-based pricing and innovative service models to remain competitive.

Falling cost structures are reshaping pricing strategies across the sector. Starlink has led the push for lower $/GB pricing, reaching approximately $0.20 per month for consumer broadband in most regions. Meanwhile, other operators are introducing competing plans, intensifying market competition. “The shift from ‘scarcity’ to ‘abundance’ of capacity supply is pushing operators to embrace value-driven pricing strategies,” commented Grace Khanuja, Senior Consultant at Novaspace.

The cost base of satellite capacity is projected to fall below $1 per Mbps per month over the next two to three years. While video pricing for traditional infrastructure remains relatively stable, data application pricing is seeing greater declines due to the rise of NGSO systems. The report also highlights a growing shift toward best-effort services over committed information rate (CIR)-based offerings, varying by industry segment.

New use cases, particularly in mobility and agriculture, are emerging as satellite operators explore new revenue streams. Starlink’s expansion into land mobility services at economical price points demonstrates how operators are adapting to changing demand patterns. The ability to deliver affordable, flexible connectivity is becoming a critical competitive factor in the evolving FSS landscape.

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Categories: Articles, Markets, Research, Satellite

Tags: novaspace, satellite, starlink