In order to implement its intention to establish a new market leader, French operator Eutelsat announced that it had executed a merger agreement with British company OneWeb. In the rapidly expanding satellite broadband sector, a French and a British company teamed together on Tuesday.
The Satellite Broadband Industry Will Reach $16 Billion by 2030
In July, when both the company signed a letter of understanding to combine and become even more significant players in broadband, Eutelsat and OneWeb first announced their intentions to join. The British government, SoftBank, and the Korean company Hanwa are among the primary shareholders of OneWeb, and according to Eutelsat, they executed the final agreement on Monday. Eutelsat said it still anticipates the merger's implementation by the second or third quarter of 2023, while legislative permission for the acquisition is still pending.
By eliminating the need for antennas and other equipment, satellite broadband aims to provide service in even the most distant regions of the world. Eutelsat projects that the market will increase to $16 billion by 2030. Starlink is the market leader, with almost 2,000 little satellites orbiting just a few hundred kilometres above the planet.
The combination of OneWeb's constellation of 648 low Earth orbit spacecraft with Eutelsat's fleet of 36 geostationary Earth orbit satellites, according to OneWeb and Eutelsat, will transform the satellite navigation market. Through a partnership with telecom company Orange, Eutelsat already offers some internet services. However, its network of 35 larger satellites, which orbit at a distance of thousands of kilometres from Earth, is often used for TV and other communications.
If the partnership with OneWeb is approved, it will be the first of its type to combine satellites in lower and higher orbits, according to Eutelsat. In addition to having a Paris listing and a French base of operations, the new joint venture would also aim to list on the London Stock Exchange.
