SES Acquires Intelsat to Form European Satellite Powerhouse

SES, a major player in the satellite communications industry, is set to acquire its competitor Intelsat in a landmark €2.8bn deal that had been abandoned the previous year. This cash transaction will result in the formation of a global satellite powerhouse headquartered in Europe, boasting a fleet of over 100 geostationary and 26 Medium Earth Orbit (MEO) satellites.

The combined entity, post-merger, will enjoy a host of advantages including expanded coverage, enhanced network resiliency, and access to a wide range of spectrum rights across various bands such as C-, Ku-, Ka-, Military Ka-, X-band, and Ultra High Frequency. These strategic moves are crucial for SES to effectively compete with the emerging low earth orbit satellite constellations from industry giants like SpaceX, OneWeb, and Amazon's Project Kuiper.

Looking ahead, the newly formed SES is gearing up for significant expansion with plans to launch eight new Geostationary Earth Orbit (GEO) units by the end of 2026. This includes the deployment of six software-defined satellites and seven cutting-edge O3b mPOWER MEO satellites, aimed at bolstering redundancy and accommodating future growth demands.

One of the key areas where the deal is expected to make a substantial impact is in the Government, Mobility, and Fixed Data segments. With a surge in customer demand for reliable and high-performance connectivity across various terrains, these segments are projected to contribute around 60% of SES's expanded revenue, amounting to €3.8bn, along with a robust pipeline of €9bn.

Christof Kern, Business Development Lead at TTP in Cambridge, UK, commented on the acquisition, stating, "The merger of Intelsat by SES signifies a significant milestone in the satellite communications realm. By combining the strengths of two industry stalwarts from Europe and the US, there is immense potential for operational efficiencies and future deployment of Low Earth Orbit (LEO) satellites to meet evolving connectivity needs."

He further added, "The consolidated entity will be well-positioned to offer extensive coverage globally at a competitive price point, albeit with slightly higher latency compared to LEO constellations like Starlink. This move is poised to establish the world's largest satellite company in terms of revenue, paving the way for shaping the future of satellite communications."