Europe’s $3.1B Satellite Deal Can’t Match Starlink
▼ Summary
– SES’s $3.1bn takeover of Intelsat is set to be approved by EU officials, creating a major European satellite internet provider.
– The merged company will have over 100 geostationary and 26 medium Earth orbit satellites, offering services like TV, internet, and secure communications.
– The merger aims to provide Europe with an alternative to Starlink amid growing concerns over reliance on Musk’s privately owned network.
– Despite the merger, the new entity will struggle to compete with Starlink’s dominance, which has over 7,000 satellites and SpaceX’s manufacturing and launch advantages.
– European policymakers see the merger as a step toward strategic autonomy in space, but it remains far from matching Starlink’s scale.
Europe’s satellite industry is taking a major step forward with a $3.1 billion deal, but the combined force still won’t match Starlink’s dominance. The proposed merger between SES and Intelsat aims to create a stronger European competitor in satellite communications, yet significant gaps remain compared to Elon Musk’s space-based internet giant.
Luxembourg’s SES is nearing regulatory approval for its acquisition of Intelsat, with EU officials expected to finalize the decision by early June. The deal, first announced in April 2024, would unite two industry veterans, bringing together over 100 geostationary and 26 medium Earth orbit satellites. Intelsat’s contribution includes 75 satellites supporting television, radio, broadband, and secure government communications.
Once completed, the merged company would become Europe’s second-largest satellite operator, trailing only Franco-British firm Eutelsat. Smaller regional players like the UK’s Inmarsat and Spain’s Hisdesat would remain in the mix, but the consolidation reflects Europe’s push for greater tech sovereignty amid growing concerns over reliance on foreign-owned networks.
Those concerns intensified after reports surfaced that U.S. officials allegedly threatened to disrupt Starlink services in Ukraine unless the country complied with demands regarding its mineral resources. The incident highlighted the risks of depending on a single privately controlled system, especially one with political ties to Washington. European operators, including SES, Eutelsat, and Inmarsat, have since engaged in discussions with EU governments about providing backup connectivity for Ukraine.
Despite the merger’s potential, Starlink’s sheer scale remains unmatched. SpaceX’s constellation boasts more than 7,000 low-Earth orbit satellites, far outpacing Eutelsat’s 600 and Amazon’s planned 3,236-satellite Project Kuiper. Additionally, Starlink benefits from SpaceX’s in-house manufacturing and launch capabilities, while SES and Intelsat rely on third-party providers.
While Intelsat has secured a $250 million agreement to tap into Eutelsat’s low-Earth orbit capacity, this dependence on external infrastructure puts the merged company at a competitive disadvantage. Even combined with Europe’s other satellite firms, the new entity lacks the resources to truly rival Starlink’s coverage, speed, and cost efficiency.
For European policymakers, the SES-Intelsat deal represents progress toward strategic autonomy in space. However, closing the gap with Starlink will require far more investment and innovation—proving that even a $3.1 billion merger may not be enough to shift the balance of power in satellite internet.
(Source: The Next Web)
