Satellite Communications: Expanding market penetration of two startup service providersTelecommunications
Two start-up satellite providers sought to expand their presence in the fiercely contested European communications market. A strategy was crafted to expand network infrastructure and content services through joint ventures.
The strategy was successful and the startups gained significant market share in voice communications and digital content. In addition, the startups pioneered the earliest examples of reality TV that are now a staple of the modern media environment.
challenge
Assist two “start up” systems providers to establish separate strategies to expand their European coverage by leveraging substantial satellite transmittal capacity acquired through acquisition. Satellite transponder capacity provides substantial bandwidth but is asymmetric in its transmission capability and has inherent delay characteristics which need to be addressed in the type of service application.
solution
The approach divided into two categories: Network services with supporting end user equipment and broadcast based portfolio of premium based services. The objective provided a mix of revenue streams based on usage and/or subscription.
Implementation strategies focused on developing relationships with those who brought complementary market presence and “value” content. This venturing approach assisted in leveraging start up investment to gain a broader portfolio with greater reach.
This allowed the workers to be involved in the job instead of feeling like they had been made redundant by technology.
results
The approach was successful and yielded diverse revenue streams spanning:
- Data downloading high speed services with a European footprint
- Lower cost intra- and inter-country voice services using the satellite footprint to span borders and connect locally at preset hubs
- Event Up-linking management Services through joint ventures
- Subscription based Sports Channel to local clubs and social venues
- Portfolio of channels spanning news and entertainment
- The start of early “reality TV” ventures