Eutelsat and OneWeb in multi-orbit merger

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Eutelsat and OneWeb to join forces across orbits in $3.4b merger

OneWeb and Eutelsat have signed a memorandum of understanding intended to create a mega multi-orbit satellite broadband provider.would operate satellites both in Geostationary Orbit via the Eutelsat's 36-strong fleet and LEO – via OneWeb's constellation, which currently stands at 428 satellites.

There are pros and cons to satellite locations: a GEO satellite has better coverage over a specific region while LEO satellites carry the promise of lower latency and are generally cheaper to build and launch, although more are needed. Combining the two should, in theory, deliver a best-of-both-worlds system depending on the challenges of integration and customer requirements.

As for how the deal will work, the transaction values OneWeb at $3.4 billion and Eutelsat shareholders and OneWeb shareholders would each hold 50 percent of Eutelsat shares.

The latter point is significant. As well as national security needs, the UK is to be the"preferred" location for launches as well as procurement for commercial manufacturing. Unfortunately for UK businesses, this also means that the country will be competing against other states for OneWeb work,"as usual for major European space projects,"

 

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