Industry Analysis & Industry Trends
The UK Satellite Telecommunications Activities industry has been a star performer in recent years. Over the five years through 2014-15, revenue is forecast to grow at a compound annual rate of 5.2% and reach £1.9 billion. In the current year, it is expected to grow by 5.3%. Companies in the industry operate and provide access to satellite infrastructure. They also purchase network access they can sell on to telecommunications operators, other businesses and the government. The bulk of industry revenue is derived from communications activities. Support services, navigation, earth observation and other services account for the remainder.
Demand for telecommunications services has proved robust despite the recession... purchase to read more
Industry Report - Industry Investment Chapter
IBISWorld uses the ratio of capital costs to labour costs as an indication of the level of capital intensity. The capital-to-labour ratio measures the amount of labour used for every unit of capital. In this case, wage costs are used as a proxy for labour and depreciation is used as a proxy for capital. In 2014-15, for every pound spent on capital, an estimated 32p will be spent on labour. This is classified as a high level of investment.
However, the level of capital intensity varies between infrastructure owners and resellers. Satellite resellers purchase capacity from infrastructure owners to sell on to customers. This means resellers avoid substantial capital outlay and financing costs, but their average returns are a mere fraction of those of successful infrastructure owners... purchase to read more