Intelsat, a satellite operator in geostationary orbit, has purchased significantly more capacity from Eutelsat's OneWeb low Earth orbit (LEO) constellation to enhance its broadband strategy across different orbits.
On March 19, the companies revealed that Intelsat has committed to purchasing $250 million worth of LEO capacity over six years starting in mid-2024. Additionally, Intelsat has the option to acquire an additional $250 million worth of capacity under the agreement, potentially extending the contract through 2031.
This deal represents a significant increase from Intelsat's previous commitment in March 2023 to buy $45 million worth of LEO capacity. Delays in deploying OneWeb's ground infrastructure have hindered the full utilization of the capacity that was purchased.
Intelsat CEO David Wajsgras stated that market demand has shifted significantly since the companies began working together 18 months ago. SpaceNews He shared this insight during an interview.
Initially focused on Europe, the Middle East, and the Pacific, the expanded partnership now encompasses all of Intelsat's key markets globally. However, the operator's current focus is on aviation and government customers.
OneWeb's services are currently accessible in Canada, the United States, Europe, Australia, and certain regions of Latin America, the Middle East, Africa, and the Caribbean.
Wajsgras added that they are observing demand signals that could potentially exceed half a billion dollars over the duration of the contract.
This collaboration also allows Intelsat to influence Eutelsat’s plans for replacing OneWeb satellites as they approach the end of their design life around 2027 and 2028.
Wajsgras mentioned that Intelsat intends to work closely with Eutelsat’s engineering and business development teams to determine the best approach for deploying additional LEO capabilities. He underscored that while Intelsat is not making direct investments as part of this collaboration, the capacity procurement from Eutelsat necessitated this level of involvement. Additionally, Intelsat previously announced an agreement to provide satellite connectivity to the largest telecommunications company in the Falkland Islands, and has secured multiple multi-orbit deals with airlines including American Airlines, Alaska Airlines, Air Canada, and Aerolineas Argentina.
During a panel discussion at the Satellite Conference, Wajsgras noted that Intelsat's multi-orbit offering had attracted more airline business than its geostationary-only service had over the past three years combined.
He also mentioned that Intelsat is contemplating a decision by the end of June on whether to invest in its own medium Earth orbit network to enhance its multi-orbit capabilities.
Intelsat, a geostationary satellite operator, has significantly increased its capacity acquisition from Eutelsat's OneWeb low Earth orbit constellation to reinforce its multi-orbit broadband strategy. American Airlines, Alaska Airlines, Air Canada, and Aerolineas Argentina.
During a March 18 panel at the Satellite Conference here, Wajsgras said Intelsat had won more airline business with a multi-orbit offering than over the prior three years combined with a geostationary-only service.
He also said Intelsat should decide by the end of June whether to invest in its own medium Earth orbit network to broaden its multi-orbit capabilities.
