• Eutelsat launch 20 satellites for its communications network using SpaceX rocket after the merger of two European companies last year.
  • Eutelsat waits for countries in the process of allowing satellite like India and Saudi Arabia to open up the market to diffuse the backlog orders of $4 billion.

What happened

Eutelsat, the world’s third-largest satellite operator by revenue, launched 20 satellites for its communications network on Sunday, employing Elon Musk’s SpaceX in its first action after combining two European companies last year. SpaceX launched the OneWeb Launch 20 mission to low-Earth orbit on Saturday, October 19, at 10:13 p.m. PT from Space Launch Complex 4 East (SLC-4E) at Vandenberg Space Force Base in California.

CEO Eva Berneke confirmed this was the first satellite launch since the merger. Eutelsat’s constellation includes over 600 low Earth orbit satellites. The company aims to integrate into the telecom ecosystem. Eutelsat serves clients like Orange and Telstra and is in talks with AT&T. With a $4 billion backlog, Eutelsat awaits market access in India and Saudi Arabia. Berneke also mentioned plans for in-flight connectivity to boost revenue next year.

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Why it’s important

Eutelsat’s merger with OneWeb, completed in September 2022, combined two significant players in the satellite communications sector. This partnership aimed to create a more competitive entity capable of providing global connectivity solutions. By merging, they pooled resources and expertise, enhancing their satellite constellation and service offerings. The merger also allowed them to better compete with larger players like SpaceX and Amazon in the expanding low Earth orbit satellite market. Ultimately, the goal is to strengthen their position in delivering broadband services, especially in underserved regions, and to drive innovation in satellite technology.

The significance lies in the collaboration between SpaceX and Eutelsat’s OneWeb, marking a strategic move in the satellite communications industry. This launch demonstrates Eutelsat’s commitment to expanding its satellite network post-merger, enhancing global connectivity. It underscores the increasing importance of satellite services in telecommunications, especially as companies seek to integrate into larger connectivity ecosystems. Additionally, it signals growing competition in the market, particularly as countries like India open up for satellite services, potentially transforming communication dynamics worldwide.

“We really want to integrate into the telco ecosystem,” Berneke said. “Satellites are an interesting niche in the overall connectivity ecosystems where telcos are the big boys in the class and satellite will always be a smaller part.”