Eutelsat Communications SA and OneWeb have announced the successful completion of their all-share merger, forming the newly named Eutelsat Group. This merger represents a significant step in the field of space communications and satellite technology. OneWeb will now operate commercially as Eutelsat OneWeb, serving as a subsidiary within the newly merged group.
Headquartered in Paris, Eutelsat Group has Bharti Enterprises as its largest shareholder, holding a substantial 21.2% share in the company. Sunil Bharti Mittal has been appointed as the co-chair, and Shravin Bharti Mittal will serve as a director on the board of Eutelsat Group. Meanwhile, Akhil Gupta will continue as a director on the board of OneWeb, which is now a wholly-owned subsidiary of Eutelsat. OneWeb’s center of operations remains in London.
Sunil Bharti Mittal, co-chair of Eutelsat Group, expressed his enthusiasm about the merger, highlighting the transformative potential it holds for communities and businesses worldwide. He emphasized the unique combination of GEO (geospatial earth orbit) and LEO (lower earth orbit) satellite technologies, stating, “This exciting combination will be transformative for communities and businesses worldwide, utilizing the unique blend of GEO and LEO technologies. This is a major milestone for us, our partners, and the customers we serve.”
Mittal also announced plans for Eutelsat Group to provide services in India later in the year, with a focus on extending broadband connectivity to underserved regions. However, this launch is contingent on the Indian government’s decision regarding spectrum allocation for satellite-based communications. The government is currently considering whether to allocate airwaves through auctions or administrative allocation.
The newly formed Eutelsat Group is strategically positioned in the space communications market due to its unique combination of two types of satellites. Eutelsat’s GEO satellite fleet will merge network density and high throughput capabilities with the low latency and ubiquity of OneWeb’s LEO constellation. This integration enables Eutelsat Group to offer customers fully integrated global connectivity services.
The merged entity is expected to achieve significant growth, with a double-digit revenue Compound Annual Growth Rate (CAGR) over the medium- to long-term, reaching €2 billion in revenue by 2027. Additionally, adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the combined entity is projected to grow at a double-digit CAGR over the same period, surpassing revenue growth.
Dominique D’Hinnin, Chairman of the Board of Directors, expressed confidence in the rapid growth of the combined business. He noted, “We will be moving fast to accelerate the growth of the combined business. With the support of strategic shareholders of both entities, we are confident of maximizing financial performance and operational excellence while capitalizing on the high-return investment of next-generation satellites.”
OneWeb’s network is already operational and is expected to be fully global by the end of 2023. The combination of GEO and LEO services is set to open up new markets and applications for customers, including fixed connectivity (backhaul, corporate networks), government services, mobile connectivity (maritime and in-flight), and innovative IP native video services at the convergence of broadband and broadcast. Eutelsat Group remains committed to its broadcast and video services while ushering in these advancements in satellite technology.