Europe's Top Two Satellite Companies: The Competition Heats Up

Two European satellite companies, OneWeb and Eutelsat, are entering the satellite internet services market as direct competitors of SpaceX’s Starlink and Amazon’s Kuiper. The companies will merge and connect their satellites in Earth’s orbit to provide faster internet services, creating a $3.4 billion deal. The combined service will operate under the Eutelsat brand and challenge the dominance of Starlink and Kuiper in the market.

Eutelsat, based in France, has 36 satellites providing TV and internet connection services, while OneWeb has sent its first internet-broadcasting satellite into space and plans to send 648 more, with 428 already in orbit. It has been focusing on commercial contracts with companies and governments for mobile connectivity.

Starlink is currently ahead of Amazon and its Kuiper project in terms of satellite internet services, with over two and a half lakh subscribers in multiple countries. Meanwhile, Amazon has booked 83 spaceflights to send 3,236 internet satellites into space over the next five years.

In a press release, Eutelsat Chairman Dominik Dahinin stated that the merger of the two companies will create business growth opportunities and allow them to serve customers in a variety of sectors. The combination will accelerate OneWeb’s satellite fleet commercialization and enhance Eutelsat’s business profile.

OneWeb had initially planned to launch its own internet service globally by June 2022 but was delayed by Russia’s military offensive in Ukraine. The company was forced to switch from a Russian rocket to SpaceX to launch its satellites. OneWeb shareholders will now own 50% of Eutelsat following the merger agreement, which is expected to be completed in the first half of 2023.