Legacy Satellite Operators Adapt to Low Earth Orbit Rise, Pivoting to Meet Government Needs
Legacy geostationary orbit operators, once dominant, are now adapting to the rise of low Earth orbit networks like Starlink. EchoStar, a notable player, has shifted its strategy following significant sales. Meanwhile, Telesat is positioning its Lightspeed project as a crucial bridge for governments worldwide, including Canada and the United States.
EchoStar, after selling spectrum to SpaceX and AT&T, has transformed into an 'asset-light growth company'. This strategic pivot reflects the changing landscape of the satellite industry.
Telesat, another major operator, is actively promoting its Lightspeed project. It sees this network as a vital link for Canada's increased defense spending and NATO commitments. The company has pitched Lightspeed to the Canadian government, which is open to collaboration. Telesat has also approached the U.S. Department of Defense, including its 'Golden Dome' initiative worth $175 billion.
However, the decline in satellite video broadcasting is putting pressure on legacy operators to explore new business lines. Telesat has not found a compelling case to launch fresh broadcast satellites due to the falling video revenues. Instead, it is looking to expand its services to meet growing government needs.
Telesat is also open to working with the EU and its allied governments in Europe to leverage Lightspeed. However, no European governments have been explicitly mentioned in this context. IRIS2, a European multi-orbit network, is set to begin service in 2030, at least three years after Lightspeed.
The satellite industry is witnessing a significant shift, with legacy operators like EchoStar and Telesat adapting to the growing dominance of low Earth orbit networks. Telesat's Lightspeed project is positioning itself as a key player in meeting government needs, particularly in Canada and the United States. While the decline in satellite video broadcasting is a challenge, it also presents an opportunity for these operators to diversify their business models.
