Novaspace’s Capacity Pricing Trends, 8th Edition finds the satellite connectivity market has entered a Post‑Capacity Era, where bandwidth is no longer the basis of differentiation. Starlink’s vertical integration and cost compression are accelerating this shift, resetting competitive expectations across the sector.

“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,” commented Grace Khanuja, Manager at Novaspace. “By accelerating this shift, Starlink is forcing the entire industry, and terrestrial MNOs, to rethink where and how value is created.”

With global supply rising and cost bases falling, capacity pricing is now on a structural downward trajectory. Data‑driven applications face the steepest declines due to low‑cost NGSO supply, while legacy video markets confront their own structural pressures as consumption patterns evolve.

In this environment, $/GB has become the defining metric of competitiveness. Starlink’s sub‑$0.30/GB pricing is resetting industry benchmarks and driving broader adoption of regional pricing, promotions, and flexible service tiers. As satellite broadband approaches cost parity with terrestrial connectivity in rural and underserved areas, competition is expanding beyond the satellite sector itself.

As bandwidth commoditises, hardware economics and service integration are emerging as the new engines of competitive advantage. The terminal ecosystem – from localised manufacturing to specialised hardware and bundled service – is becoming a strategic priority, blending network, device and user experience into a unified value proposition.

With cost structures converging and value shifting downstream, the winners in this transformed market will be those that innovate at the terminal, service, and user‑experience layers, suggests the report.

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Categories: Articles, Markets, Research, Satellite

Tags: novespace, satellite, starlink