French satellite operator Eutelsat announced on Monday that it is in discussions with its British counterpart OneWeb about a potential merger to create a world-class broadband internet provider that would compete with US providers like SpaceX's starlink. Eutelsat Communications stated that it has spoken with its fellow OneWeb co-shareholders about the prospect of combining all of their shares to create a business that would be the global leader in connectivity in response to recent market rumours. OneWeb's 23% share is already held by Eutelsat, which specialises in geostationary earth orbit with a fleet of 35 satellites positioned at the height of 36,000 kilometres for satellite internet services.
OneWeb, on the other hand, has put into operation 428 of a total of 648 so-called low earth orbit satellites, which operate at the height of a few hundred kilometres. According to Eutelsat, the combined company would be the first multi-orbit satellite operator to offer integrated GEO and LEO solutions. It would also be in a unique position to take on the burgeoning satellite connectivity market, which is predicted to reach $16 billion by 2030.
OneWeb, one of the two major worldwide LEO networks, has seen recent growth, and it is anticipated that the services from the company will be completely operational by 2023.
The deal would be a logical development in the productive alliance between Eutelsat and OneWeb. Shareholders of Eutelsat and OneWeb would each hold 50% under the terms of the proposed deal.
Starlink and More Would Face Competition
Satcom sector is already witnessing strong competition from several private players across the world. Few of the global players, such as Starlink and Amazon's Project Kuiper are direct competitors of OneWeb. This partnership would help both OneWeb and Eutelsat make aggressive strides towards reaching every part of the country with a satellite broadband network. Starlink is already facing problems in markets such as India, where regulatory approvals are not easy to get.
