Eutelsat and OneWeb have successfully completed their merger, creating a global satellite connectivity provider. The combined company, operating under the name Eutelsat OneWeb, will retain its headquarters in Paris and continue to be listed on the Paris stock exchange.
Eutelsat’s move towards telecoms comes as the market for high-speed space connectivity in low-Earth orbit is estimated to reach $16 billion by 2030. This technology is particularly advantageous for isolated regions without fiber optics.
The merged company plans to integrate Eutelsat’s fleet of 36 Geostationary Orbit (GEO) satellites with OneWeb’s constellation of 648 Low Earth Orbit (LEO) satellites, 428 of which are already in orbit. This will create an innovative GEO-LEO service that opens up new markets and applications, including fixed connectivity, government services, and mobile connectivity.
The network is already operational, with global coverage expected by the end of 2023. Dominique D’Hinnin, Chairman of the Board of Directors at Eutelsat Group, described the merger as a historic moment for the satellite industry. He emphasized the company’s commitment to accelerate the growth of the combined business with the support of strategic shareholders.
Eva Berneke, Chief Executive Officer of Eutelsat Group, highlighted the company’s unique position as the only GEO-LEO operator in satellite communications offering ubiquitous connectivity. She expressed excitement about the challenge of delivering global connectivity and the opportunities provided by the merger in terms of scale, financial strength, and business proposition.
While Eutelsat Group is expected to achieve double-digit revenue growth over the medium to long-term, reaching around €2 billion by 2027, it will face competition from established players such as Starlink, Amazon’s constellation, and China’s Guowang constellation. Additionally, the European Union recently launched its own constellation, Iris.
The completion of the merger between Eutelsat and OneWeb marks a significant milestone in the satellite industry, positioning the newly formed Eutelsat OneWeb as a major player in the global satellite connectivity market.