A new report by Novaspace has suggested the global satellite connectivity sector is moving into what it describes as a “Post-Capacity Era,” where bandwidth alone is no longer the primary factor that differentiates providers. According to the company’s Capacity Pricing Trends, 8th Edition, shifting market dynamics and the growing influence of Starlink are accelerating changes across the industry.
The report highlights how Starlink’s vertically integrated business model and aggressive cost structure are reshaping competitive expectations in the satellite market. As supply increases and the economics of capacity continue to converge, the focus of competition is shifting away from raw bandwidth toward end-user pricing and integrated service offerings.
Grace Khanuja, Manager at Novaspace, said: “The market has moved beyond capacity as a differentiator. As supply expands and economics converge, the real battleground is end‑user pricing and integrated service delivery. By accelerating this shift, Starlink is forcing the entire industry, and terrestrial MNOs, to rethink where and how value is created.”
The report indicates that with global satellite capacity increasing and operational costs declining, pricing for bandwidth is now on a long-term downward trajectory. Data-driven applications are experiencing the most significant price drops due to the availability of lower-cost non-geostationary satellite supply, while traditional video distribution markets are also facing structural pressures as viewing habits and content consumption patterns continue to change.
In this evolving landscape, the report identifies the cost per gigabyte metric as the new benchmark for competitiveness. Starlink’s pricing, reported at below $0.30 per gigabyte, has begun to reshape market expectations, encouraging other providers to introduce regional pricing models, promotional offers and flexible service packages. As satellite broadband moves closer to cost parity with terrestrial connectivity in rural and underserved areas, competition is expected to intensify not only within the satellite industry but also with traditional telecom providers.
The study also highlights a shift in where companies can gain a competitive edge. As bandwidth becomes increasingly commoditized, the economics of hardware and the integration of services are emerging as critical factors. The satellite terminal ecosystem—including localised manufacturing, specialised equipment and bundled service offerings—is becoming a key strategic focus as companies aim to combine network capabilities, devices and user experience into a single value proposition.
According to Novaspace, as costs continue to converge and value creation moves further downstream, companies that succeed in the next phase of the satellite connectivity market will be those able to innovate across terminals, services and overall user experience.
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