A recent string of deals in Asia underscores the trend...
A recent string of deals in Asia underscores the trend of cooperative competition in partnerships between fixed satellite service operators, NSR analyst Patrick French said in a blog post. One of the issues driving increased cooperation is “that simple physics…
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of frequency allocation is driving operators to reach deals together.” The crowding of the frequency bands “has made it very difficult for any single operator to develop a new clean slot,” he said. Cooperative agreements also will help the bottom line for small- to mid-sized operators “without the conundrum of how to grow large enough to benefit from deals normally reserved for the top four biggest operators.” These agreements can help partners have access to a slot and satellite availability, and create key client relationships, he said. Individually, “they may have lacked one or more of the critical pieces of the business plan.”