Satellite is often a technology that has labels. It is often labeled as a “last resort” technology, and satellite investments are often seen as “low risk, low reward” which can sometimes across as withering or faint praise. The question is can satellite offer investors a good level of return, and can outside perceptions of our industry change?

At the time of going to press, Intelsat has announced its plans for an IPO, which will be one of the most eagerly awaited, and one that could offer an interesting barometer of how the overall industry is performing. Intelsat is one of the flag bearers of our industry, and a huge investor in new satellites and launch services, among other things. The satellite industry needs a healthy Intelsat the same way it needs a healthy SES, Eutelsat, etc. The road to an IPO has not been an easy one for the company. It looked for a long time that the IPO might take place last year, but for various reasons it didn’t happen. It will be interesting to see how Intelsat fares under the glare of the investment community as the IPO of common shares will likely raise around $540 million, which will probably be used to cut the company’s overall debt.

Lets be honest, I don’t think any of us are surprised by this announcement. With the financial markets showing signs of life, and IPO activity on the increase, it would have been a surprise if Intelsat had not announced its IPO in the first part of this year.

It is good to see the satellite industry as part of this heightened activity. With Intelsat’s EpicNG strategy being well received in the industry, this could become the key for the company going forward to advance to the next stage in its growth plan. The announcement is also good news on other levels: it brings new money into the industry, and no doubt it will give Intelsat’s management greater flexibility going forward.

On the subject of technology and initiatives like Intelsat EpicNG, a few years ago the main “C” word when talking about our industry was consolidation. Questions on who was buying who and where often dominated conversations. Things have changed, and it seems the new “C” buzzword of choice is “capability”, as today it is more about what the technology can do, rather than which company might buy another.

Talk of consolidation is pretty limited nowadays. Sure, you get the odd interesting deal such as Arabsat acquiring Hellas-Sat, but the truth is status quo in the satellite industry has remained pretty much unchanged in recent times. While there is talk of closer competition, and perhaps even closer ties, between the FSS and MSS sectors, it doesn’t appear to be coming up in the rear view mirror. Changes in technology are driving our industry more than any company going on some kind of shopping spree. The consolidation question seems to come up less and less. Instead, we talk more about things like capability and satellite technology being an enabler.

We have seen it for many years in the wireless industry, such innovation, and the costs of bringing such capabilities come spiraling down. Some such as O3b Networks CEO, Steve Collar say such as innovation in our industry is much needed if satellite is to gain a stronger position in the overall communications ecosystem. The drive for better, more cost-effective technology has clearly been stepped up.

From a technology perspective, the launches of the O3b Networks’ constellation, Inmarsat’s Global Xpress satellites, as well as SpaceX’s first commercial launch will be among the highlights in 2013. It really is a pivotal year in many ways, and it could shape the direction for years ahead.

For a company like Intelsat, the great strategic plan, at this stage, revolves more around a technology based initiative like EpicNG, rather than going on some kind of shopping spree. Things are changing, and Intelsat’s IPO and SES’s O3b Network investment could show outside investors that the satellite industry is deserving of more than just faint praise.