Nearly fifteen months after it announced plans to acquire satellite operator and aero ISP Intelsat, SES has completed the $3.1 billion deal. SES says it will retain its Luxembourg headquarters as well as a “significant” presence in the United States.
The complementary tie-up required approval from the US Federal Communications Commission. That blessing arrived on 11 July after the FCC concluded that the transaction was “likely to generate certain public interest benefits, including lower costs due to synergies and elimination of double marginalization, improved network quality, increased investment, national security benefits, and the creation of a more vigorous satellite competitor.”
With the deal complete, SES now boasts a massive network of roughly 90 geostationary (GEO) and nearly 30 medium earth orbit (MEO) satellites, as well as what it refers to as “strategic access” to low earth orbit (LEO) satellites, including through Intelsat’s distribution agreement with Eutelsat OneWeb’s Ku-band LEO network.
“SES can now deliver connectivity solutions utilizing complementary spectrum bands including C-, Ku-, Ka-, Military Ka-, X-band, and Ultra High Frequency,” the firm says in a statement.
“The expanded capabilities of the combined company will enable it to deliver premium-quality services and tailored solutions to its customers. The company’s assets and networks, once fully integrated, will put SES in a strong competitive position to better serve the evolving needs of its customers including governments, aviation, maritime, and media across the globe.”
Together, SES and Intelsat boast a combined contract backlog exceeding €8 billion.
SES and Intelsat in aviation
Both firms are involved in inflight connectivity. Whilst SES is not presently an aero ISP, it supplies Ku-band GEO satellite capacity to major IFC integrators like Panasonic Avionics and indeed Intelsat, and Ka-band capacity to Viasat, which is pursuing a multi-orbit solution for commercial aviation.
SES’s own multi-orbit network, based on its Ka-band MEO + GEO satellites, is known as SES Open Orbits in commercial aviation. It powers Neo Space Group’s new IFC service, and is expected to support other multi-orbit IFC solutions in the future.
Intelsat, meanwhile, serves airlines directly as an aero ISP and integrator, offering both GEO- and multi-orbit LEO/GEO-focused inflight connectivity to airlines, in the latter instance utilizing Eutelsat OneWeb’s LEO service. In 2020, Intelsat acquired Gogo’s commercial division, setting the stage for more industry consolidation. Viasat subsequently acquired Inmarsat, and Eutelsat acquired OneWeb.
Both SES and Intelsat are managed service providers (MSPs) on Airbus’ linefit, supplier-furnished HBCplus program, with SES listed as a Ka-band MSP on the program, supporting the likes of Neo Space Group, whilst Intelsat is a Ku-band MSP.
Given their different approaches in aero, the FCC, in approving the deal, said the pairing was unlikely to result in any horizontal competitive harms in the commercial aviation segment. Indeed, it would be hard to argue otherwise; SpaceX’s Starlink Ku-band LEO-based IFC service is proving to be a major disruptor in commercial aviation. And at present, its only other competitor in LEO broadband-based IFC is Eutelsat OneWeb, with whom Intelsat enjoys a distribution partnership in support of its multi-orbit LEO/GEO solution.
Amazon’s Project Kuiper LEO network and Telesat’s Lightspeed LEO network expect to compete in aero when their networks are built out.
Under the new management structure at SES, Intelsat chief commercial officer Michael DeMarco becomes president of SES’s aero vertical.
“As a senior leader with deep domain expertise in the telecommunications and satellite industry, he is driving customer-centric growth and commercial strategy, supporting long-term value creation across evolving market landscapes,” SES says.
SES last year expressed optimism that the progress it made under the Biden Administration to advance its acquisition of Intelsat would continue under the new Trump Administration. That assumption has now been validated.
“Today, we’re not just merging two companies — we’re creating a stronger company, built for the future. I want to extend a warm welcome to all new employees, customers, and partners,” says SES CEO Adel Al-Saleh, who will continue in his role.
“In this new chapter, we are bringing together a powerful mix of talented people, network infrastructure, spectrum, innovation, and global relationships that will allow us to deliver next-generation connectivity and space-enabled services in smarter and quicker ways.”
Going forward, SES plans to maintain “disciplined investment” in future growth, whilst exploring emerging growth markets including Internet of Things (IoT), direct-to-device communications, inter-satellite data relay, space situational awareness, and quantum key distribution.
“Our focus is clear: to grow, to lead in high-potential markets, and to shape the future of our industry. This is a long-term play, and we are building with the future in mind — growing year after year, expanding our capabilities, and creating lasting value for our customers and shareholders alike,” Al-Saleh says.
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