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May 12 2015

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Interesting take on the impact more launch providers will have to the satellite market

NEW LAUNCH SYSTEMS: GOOD NEWS FOR OPERATORS? The law of supply and demand dictate that more launch options means lower launch costs, but NOT SO FAST MY FRIEND:

  • New launchers mean higher insurance rates. True, those rates will go down over time, assuming that the launcher itself is reliable.
  • Cheaper Prices per Vehicle does not necessarily follow more lift capacity if satellites and passenger vessels are not sized to take advantage of the additional capacity

Additionally, the author points out that the benefits of more launch providers is more flexible launch manifests and more freedom in satellite design, particularly for large buses.

Very well worth the read…

Conclusion:

Current vehicle designs and plans of launch service providers signal change to come in the GEO and LEO launch markets. More on-demand launch services will alleviate project timeline rigidity and cash flow. Similarly, lower prices, even if somewhat dampened by near term insurance hikes, will help close business cases for otherwise challenging projects. Alongside growth in competition, customers will have a greater variety of capabilities to choose from to strategically leverage the right satellite for their end-user markets. Yet while this new vehicle landscape has potential to help the satellite industry continue to flourish and diversify, the true benefits for operators will remain uncertain until the new vehicles reach market and ramp up launch rates. Whether this can happen on cost, on schedule, and on capability remains a central question that will determine just how positive change can be.

Permanent link to this article: http://www.newspaceraces.com/2015/05/12/interesting-take-on-the-impact-more-launch-providers-will-have-to-the-satellite-market/

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