# Blockchain-Embedded Strategic Options for Satellite Operators: Sell, SataS, or Dual?
## 3 Models excluding Blockchain Technology
### ND Model: Dual Channel without blockchain  
When the SO employs a dual-channel strategy, consumers are free to choose to own satellites or subscribe to SataaS. In this scenario, their consumption decision depends on the comparison of the consumer surplus obtained from purchasing and subscribing: \(ev-p_{r}\) versus \(v-p_{s}-s\). Consumers whose valuation meets \(ev-p_{r}\geq 0\) will consider purchasing the satellite directly. We denote by \(v_{r}\) the valuation of this type of marginal consumer, i.e., \(v_{r}=\frac{p_{r}}{e}\). Consumers whose valuation meets \(v-p_{s}-s\geq 0\) will consider subscribing to SataaS. We denote by \(v_{s}\) the valuation of this type of marginal consumer, i.e., \(v_{s}=p_{s}+s\). Eventually, if \(ev-p_{r}=v-p_{s}-s\), marginal consumers with a valuation \(v_{d}\) equal to \(\frac{p_{s}+s-p_{r}}{1-e}\) are indifferent to these two channels. If the valuation is higher than this value, they will tend to subscribe to SataaS. Thus, there exist two cases, \(v_{s}>v_{r}\) and \(v_{s}<v_{r}\). In the first case, if \(v_{s}>v_{r}\), then we can obtain \(v_{d}>v_{s}>v_{r}\). This means that consumers' valuations in \([v_{r},v_{d}]\) tend towards purchasing satellites from the sell channel, while consumers in \([v_{d},1]\) prefer to subscribe to SataaS. Those consumers with a valuation in \([0,v_{r}]\) refuse to spend in either channel. In the second case, no customers prefer to purchase satellites directly. Therefore, consumers whose valuation is in \([v_{s},1]\) subscribe to satellite data from SataaS channels. Based on the above analysis, we obtain the market segmentation of the dual channels:  
\[\text{if }p_{s}+s\geq\frac{p_{r}}{e},\ D_{d}^{N}= \begin{cases}D_{r}^{N}=\frac{p_{ r}+s-p_{r}}{1-e}-\frac{p_{r}}{e},\\ D_{s}^{N}=\frac{1-\frac{p_{r}+s-p_{r}}{1-e}}{1-e};\end{cases}  \tag{5}\]\[\text{otherwise, }D_{d}^{N}= \begin{cases}D_{s}^{N}=1-p_{s}-s,\\ D_{r}^{N}=0.\end{cases}  \tag{6}\]  
Thus, the SO's payoff function can be written as follows:  
\[\text{if }e\geq\frac{p_{r}}{p_{s}+s},\;\pi_{d}^{N}= \begin{cases}(p_{r}-c_{r}) \times(\frac{p_{s}+s-p_{r}}{1-e}-\frac{p_{r}}{e})+ps\times(1-\frac{p_{s}+s-p_ {r}}{1-e})-C,\\ s.t.\;\frac{p_{s}+s-p_{r}}{1-e}\geq 1\end{cases}  \tag{7}\]  
\[\text{otherwise, }\pi_{d}^{N}=p_{s}\times(1-p_{s}-s)-C \tag{8}\]  
By solving the constraint equation, we obtain Lemma 1  
Lemma 1: _According to the relationship of \(e\), \(s\), and \(c_{r}\), there are three strategies for the SO:_  
1. _When_ \(\frac{c_{r}}{s}\leq e\leq 1+c_{r}-s\)_, the dual channel exists, where_ \({p_{s}}^{*}=\frac{1-s}{2}\)_,_ \(p_{r}^{*}=\frac{c_{r}+e}{2}\)_,_ \(\pi_{d}^{N}=\frac{(c_{r}-e)(c_{r}-s)+e(1-s)(1-e+c_{r}-s)}{4e(1-e)}-C\)_._
2. _When_ \(0<e<\frac{c_{r}}{s}\)_, there is only the SataaS channel, where_ \(p_{s}^{*}=\frac{1-s}{2}\)_,_ \({\pi_{s}}^{N*}=\frac{(1-s)^{2}}{4}-C\)_._
3. _When_ \(1+c_{r}-s<e\leq 1\)_, there is only the sell channel, where_ \(p_{r}^{*}=\frac{c_{r}+e}{2}\)_,_ \({\pi_{r}}^{N*}=\frac{(e-c_{r})^{2}}{4e}\) _. The equilibrium outcomes are summed in Table_ 4_._  
The conditions for dividing the channel in Lemma 1 give us the following insight. Here, \(e\) is the probability of satellite launch success, \(c_{r}\) is the cost of manufacturing a satellite, and \(s\) represents the utility loss to the user from the data risk of SataaS. Therefore, when the launch success rate is low and the satellite cost is high, no users will choose to purchase the satellite, and the dual channel is reduced to the SataaS strategy; when the utility loss to the user from data security is high, no users will choose SataaS, and the dual channel is reduced to the sell strategy. Thus, only when the satellite launch success rate remains at \(\frac{c_{r}}{s}\leq e\leq 1+c_{r}-s\) can both the SataaS and sell channels exist at the same time. As the launch success rate declines, satellite buyers in the dual channel will no longer choose to own satellites and will shift to the SataaS market.