This is because the entry of LEO services has not yet had a definitive impact on the overall supply of satellite connectivity. The downward trend in GEO capacity prices is very slight and the value per Mbps in teleports in the region is homogeneous. LEO competition could be felt in latency-sensitive services, they admit.

According to the consulting firm Euconsult, the price of fixed satellite service (FSS) capacity is decreasing rapidly due to an increase in the availability of next-generation High Throughput Satellite (HTS) systems, both in geostationary orbit (GEO) and non-geostationary orbit (NGSO), such as Starlink. However, representatives from service providers gathered at LATSAT 2023 stated that this trend is not observed at a regional level.

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LATSAT 2023

Satellite service providers see no significant drop in connectivity prices throughout the region

MORE ANALYSIS

Direct-to-Device: Two competing models in active testing phase

On one side are the established operators offering mobile services via satellite; on the other, the new entrants relying on large LEO constellations. Revenue forecasts project US$36 billion from D2D (direct-to-device) services by 2033.

SES: MEO expansion aims for 100-satellite fleet

This was confirmed by Alan Mattos, Senior Solutions Engineer at the company. It will mark the culmination of a three-stage process that leverages the unique characteristics of medium Earth orbits.

ENACOM enters new intervention phase: 18 months of instability

The government of Javier Milei has moved forward with opening the skies to new satellite operators and simplifying regulations, including the repeal of Decree 690, which had allowed state intervention in the mobile business and data provision.

Geopolitics enters the fray over mega-constellations in low Earth orbit

Both the European Union and China have initiatives to occupy space with LEO fleets and constellations. Within Europe, national governments are promoting public-private partnerships with state involvement.

IMF warns AI demands greater, more reliable energy resources

In a recent report, the IMF warns that this aggregate demand could impact electricity prices if policies are not adapted to the new reality for the sector. By 2030, AI data centers will consume as much electricity as India.

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