The Paris-based satellite telecommunications giant already owns 23% of the OneWeb consortium… which, despite its problems deploying its satellites, expects strong growth. Eutelsat confirms that it wants to create a “common entity” with extended services.
The process will not be concluded overnight.
Fuuuuuusion
In March 2020, when OneWeb declared bankruptcy, the case was difficult. Indebted due to its unfolding superconstellation and lack of revenue, the company was eventually taken over by a consortium between the UK government and Indian telephone operator Bharti.
The pandemic didn’t help, but in April 2021, when the situation had stabilized and the satellite clusters were heading into orbit, the French operator Eutelsat had bought 23% of the company. A minority share for the moment, but in July 2022, Eutelsat would still like to get closer to OneWeb to merge with it and form a single entity, leader in satellite communications and connectivity. Current OneWeb shareholders would retain a minority stake in Eutelsat.
OneWeb is already installed
Eutelsat today specializes in telecommunications via geostationary orbit, with an impressive fleet of dedicated satellites and rental of beams on various commercial satellites. A sector that is still important today, but which is watching very closely the evolution of the market with the new “internet constellations” in low orbit… A field which benefits from strong investments and a lot of promise, and yet still generates relatively little income .
However, OneWeb (with Starlink) is one of the two best identified and ideally placed players with reserved frequencies and hundreds of active and efficient satellites. High-speed connectivity demonstrations have multiplied in recent months! That “traditional” players in the sector such as Eutelsat decide to invest massively in it could be seen as an imminent sign of consolidation.
You will have to convince…
However, this merger-absorption will be subject to numerous guarantees. First, it will be necessary to convince the main shareholders of OneWeb today. By promising, for example, the English government specific rights, such as a veto vis-à-vis customers who can benefit from the services of the constellation (so that it does not support interests contrary to the crown, for example).
Then, it will be necessary to give some pledges to the competition authorities in Europe, but also to the creditors: Eutelsat, in spite of a good health displayed, accumulates nearly 3 billion euros of debt. That’s almost the full value of OneWeb, valued at $3.4 billion…
Source : Eutelsat
4