Eutelsat surprised the Telecom community with plans to merge with OneWeb, an announcement that has generated both positive feedback (Exane/BNPP) and negative reactions (shares tumbling after announcement). Eutelsat is fully right about the need to pivot towards a connectivity-centric business. But, there are multiple questions that are not so certain: Is merging with OneWeb the.
The satcom industry is set to witness the next wave of growth, driven by growing opportunities in consumer broadband, enterprise networks, mobility and government/military services. While some of these opportunities are greenfield application use cases, most of the expected demand is part of the age-long total addressable market (TAM), which has been unreachable due to incompatibility, pricing, supply.
Software-defined satellites are a growing trend in the satellite industry, especially in GEO. With SES-17’s successful launch two weeks ago, and Eutelsat Quantum as well back in July, the industry is seeing more fully-flexible satellites in orbit.
Use cases like this are fuelling demand for ubiquitous coverage delivered from orbit. According to Northern Sky Research (NSR), the influx of satellite broadband players will contribute to the manufacture and launch of almost 24,700 satellites over the next decade.
While maritime and aero are key satellite markets due to clear remoteness, land mobile and M2M/IoT markets have always had to face competitive pressures from terrestrial networks. However, a new generation of networks which use similar technologies to terrestrial networks will be coming online in the coming years, promising unified connectivity on the same chipset..