Eutelsat Communications has announced its decision to sell its European broadband retail activities to an experienced private operator as part of its strategic shift towards a wholesale go-to-market model. The company has reached an agreement to divest the activities, which include Bigblu Operations and other retail operations in key European markets such as the UK, Ireland, France, Germany, Italy, Spain, Portugal, Poland, Hungary, and Greece.
Emphasis on the wholesale go-to-market model
According to the statement, the move comes as Eutelsat emphasizes its successful wholesale approach to distributing satellite broadband capacity across Europe.
The company has inked significant wholesale deals with telecommunications players, including Orange (France), TIM (Italy), Hispasat (Spain), and Swisscom (Switzerland), enabling the distribution of capacity on the Eutelsat KONNECT satellite in their respective markets.
The private operator set to acquire the retail activities will also serve as a wholesale distributor in these existing markets.
Launch of KONNECT VHTS to reinforce strategy
Eutelsat's strategy will be further reinforced by the forthcoming launch of KONNECT VHTS, anticipated to enter service in the second half of 2023. With 230 beams covering Europe and MENA (Middle East and North Africa), the satellite will offer a Ka capacity of 500 Gbps, which can be adjusted based on demand and specific needs within each country.
The company has already secured firm commitments for a portion of this additional capacity from major European telecom operators such as Orange, TIM, and Swisscom. These commitments affirm the potential of KONNECT VHTS to deliver a compelling and competitive broadband solution for underserved regions across Europe.
Eutelsat Communications, established in 1977, has solidified its position as a leading global satellite operator, providing connectivity solutions across various industries worldwide.
With the divestment of its European retail broadband distribution activities, the company aims to consolidate its focus on the wholesale model and leverage its forthcoming KONNECT VHTS satellite to address the connectivity needs of underserved regions and strengthen its position in the European market.