Two major players in the satellite communication industry, SES and Intelsat, have announced their plans to merge in response to increasing competition from emerging satellite broadband networks like Starlink. SES, headquartered in Luxembourg, will acquire Intelsat for $3.1 billion, creating a combined entity with a fleet of approximately 100 multi-ton satellites in geostationary orbit.
This merger comes as demand for communication services through large geostationary satellites is declining. While certain entrenched customers like video media companies and the military will continue to rely on these satellites, there is a growing demand for services offered by constellations of smaller satellites in low-Earth orbit (LEO).
Satellites in LEO offer advantages such as lower latency and lower production costs compared to traditional geostationary satellites. With SpaceX’s Starlink network leading the way with over 5,800 active satellites, competition in the satellite communication industry has intensified.
SES’s acquisition of Intelsat will significantly expand their network capabilities, spanning various communication bands including Ka-band, Ku-band, X-band, C-band, UHF, and secure bands for military use. The combined company will offer coverage over 99 percent of the world, providing a range of services to clients.
Both SES and Intelsat have new satellites on order, including both GEO and MEO spacecraft. Intelsat also brings access to OneWeb’s LEO constellation to the table, further enhancing the combined company’s offerings.
The merger is expected to close in the second half of 2025, pending regulatory approvals. The boards of both companies have unanimously approved the transaction, which marks a significant step forward in consolidating the satellite communication industry amidst increasing competition and evolving market demands.
