A New Powerhouse in the Satellite Communication Industry

A significant shake-up is underway in the sphere of satellite communication. SES and Intelsat, two prominent players in this industry, have announced their plans to forge an alliance . What prompted this move is the intensifying competition from emerging networks like Starlink, which has been growing at an exponential rate. To cushion their position in this fiercely competitive market, SES has decided to acquire Intelsat for a considerable sum of $3.1 billion.

Fending off the Emerging Threat

For the uninitiated, both SES and Intelsat own the majority of commercial spacecraft in geostationary orbit. This acquisition will lead to the creation of an entity possessing a fleet of nearly 100 multi-ton satellites in geostationary orbit. To put things into perspective, this fleet will be twice as large as the next big operator of commercial geostationary satellites.

The new entity will have a commanding orbit, located over 22,000 miles over the equator. However, the increasing competition from Starlink and other similar networks has nudged these traditional powerhouses to join forces.

The Rising Trend of Low-Earth Orbit Satellites

SpaceX’s Starlink network has been a game-changer in this industry. It has already launched more than 5,800 active satellites in a low-Earth orbit. These satellites might be smaller than conventional geostationary platforms, but their combined power can overshadow the capacity of internet networks operated by large geostationary satellites.

Gaining mainstream acceptance, Starlink now has more than 2.6 million subscribers. This swift shift in demand towards services offered by smaller satellites closer to Earth has forced traditional operators to rethink their strategies.

Lowering the Barriers

Low-Earth orbit satellites have their fair share of advantages. They are closer to ground users, hence provide signals with a lower latency . Additionally, manufacturing these satellites is cost-effective, especially when compared to the hefty price tag of $250 million (or more) attached to a single geostationary satellite.

Conclusion

The satellite communication industry is set for significant upheaval, with SES and Intelsat uniting to compete against the rapidly emerging satellite broadband networks, such as Starlink. While this consolidation expands their spectrum portfolio, global infrastructure, and service solutions, how it pans out against mighty contenders with burgeoning subscriber bases remains to be seen.