Intelsat strikes $250M deal with Eutelsat Group

McLean-based satellite services provider Intelsat has committed to secure low-Earth orbit service for six years for $250 million from Paris-based Eutelsat Group’s OneWeb low-Earth orbit (LEO) constellation service, with an option for another $250 million, Intelsat announced Tuesday.

“We’ve been partnering with Eutelsat for quite some time now, leveraging its OneWeb LEO constellation to offer a multi-orbit solution, primarily in commercial aviation,” Intelsat CEO Dave Wajsgras said in a statement. In 2020, Intelsat purchased in-flight broadband connectivity provider Gogo Inc.’s commercial aviation business for $400 million, serving a customer base of more than 3,000 commercial aircraft.

Intelsat will provide direct design and functionality input to Eutelsat as it develops its Next Generation OneWeb constellation, according to the the company, “to help ensure that the new constellation will have the capabilities to meet real-world customer needs going forward.”   

The partnership between Intelsat and Eutelsat, Eutelsat Group CEO Eva Berneke said in a statement, “showcases the necessity in today’s world for major satellite operators to have the ability to offer multi-orbit solutions to their customers.”

Founded in 1964, Intelsat provides satellite-based communications to government, nongovernmental organizations and commercial customers. Last year, merger talks between Intelsat and Luxembourg-based competitor SES S.A. were called off. The merger was anticipated to have created a $10 billion global business. The McLean-based satellite operator emerged from Chapter 11 bankruptcy and financial restructuring in early 2022.