Intelsat has announced the expansion of its partnership with Eutelsat through a significant $500 million agreement over seven years, aiming to capitalize on the burgeoning opportunities in the multi-orbit space sector. This collaboration will integrate Eutelsat’s OneWeb Low Earth Orbit (LEO) network, which it has owned for six months, with Intelsat’s existing geostationary orbit (GEO) and terrestrial networks. The goal is to enhance the range of services Intelsat can offer by leveraging these combined space assets.
The partnership, an extension of a previous agreement focusing on Europe, the Middle East, and the Pacific, underscores Intelsat’s successful utilization of multi-orbit capabilities over the past year. By further incorporating LEO capabilities, Intelsat aims to not only enrich its current service offerings but also attract new customers.
Dave Wajsgras, the CEO of Intelsat, emphasized the fruitful ongoing relationship with Eutelsat and the increased demand for multi-orbit solutions among customers. This demand underpins the rationale for the considerable investment in the extended partnership, which is seen as mutually beneficial for both Intelsat, Eutelsat, and their clientele.
The deal, set to commence in mid-2024, includes an upfront commitment of $250 million from Intelsat, incorporating a previous $45 million agreement. There’s also an option for Intelsat to invest an additional $250 million by the end of the agreement period.
Eutelsat’s CEO, Eva Berneke, expressed confidence in the OneWeb constellation’s future capabilities and the critical need for satellite operators to provide multi-orbit solutions in today’s market. She also highlighted the value of further integrating Intelsat’s expertise in aviation and government sectors into their joint efforts.
Beyond enhancing the use of the OneWeb network, this partnership aims to support the ongoing development of the OneWeb constellation, with Intelsat contributing to its design and functionality. This collaboration marks a significant step in the satellite industry, indicating a shift towards partnerships and collaboration in an era marked by numerous mergers and acquisitions.
