Merger in Europe will create competition for SpaceX’s Starlink network

Deepak Gupta July 28, 2022
Updated 2022/07/28 at 2:13 PM

SpaceX already has more than 2500 satellites in low Earth orbit providing internet through the Starlink service. Global, flexible, with no loyalty contract and increasingly comprehensive. This service could become a problem for conventional operators and for satellite communications services that already exist on the market. Unless a merger can “stop” Elon Musk’s momentum. And the Europe project may already be underway.

Paris-based Eutelsat Communications SA has reached an agreement to acquire Britain’s OneWeb Global. This merger, which will combine the companies’ internet satellite fleets, could create greater competition for Starlink.

The merger of all shares value OneWeb at $3.4 billion, declared the 2 companies. THE eutelsat previously had a nearly 24% stake in OneWeb. UK authorities own 19%. Upon completion of the deal, the federal government's stake in the mixed company will drop to 11%. It will maintain a "special quota" that will provide security guarantees at the national level.

The two European PC satellite TV companies will mix their fleets. Eutelsat will contribute its 36 geostationary orbit satellites and OneWeb will contribute the fleet of 428 “low earth orbit” satellites already in use.

Geostationary satellites orbit above Earth's ground and along the equator. They transfer at a slower rate than "low terrestrial orbit" satellites, yet they have extra shielding space. Low Earth orbit satellites, however, circle closer to the Earth's ground at a faster rate.

Although these satellites cover less space than geostationary satellites, they require a constellation of different interconnected satellites for use in communications.

In a joint statement, the two companies stated that the merger of the fleets will allow the community to learn from the excessive capacity of the geostationary fleet and the fast connectivity of low Earth orbit satellites. according to Press releasethe combination of the two "creates the optimal solution to satisfy an even wider range of customer needs, thus expanding the Addressable Market".

SpaceX has a fleet of around 2500 low earth orbit satellites. Jeff Bezos additionally entered the fight for his fair share of space with Amazon's Project Kuiper. Bezos hopes to put about 3,200 satellites into low Earth orbit.

OneWeb, Project Kuiper and Starlink are among a handful of companies and entities racing to send broadband satellites into orbit. The focus is to bet on some market niches and also compete with conventional broadband providers. SpaceX's Starlink service gained weight and credibility with its forceful action in Ukraine, local authorities and army officials credited it with serving their military forces to keep them linked in the war against the Russian invader.

In March, SpaceX agreed to help launch OneWeb's satellites after Western tensions with Russia blocked the company from using some Russian launch pads.

After a difficult period, with the future in jeopardy, OneWeb emerged at the end of 2020 after receiving $1 billion in funding from the British authorities and India's Bharti Global Ltd. Bharti Global.

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