Eutelsat Stops Consumer Satellite Broadband

by Yuri Nikolaenko

Eutelsat Changes Direction by Selling EU Retail Broadband Business

Jun 17, 2023

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Eutelsat, a global satellite operator, has announced its exit from the retail broadband market. The decision comes as the company focuses on its core business of providing satellite communication services to businesses and governments. This news comes as a surprise, as Eutelsat has been investing heavily in this sector for several years. The sale encompasses the assets that were purchased by the French satellite operator from an EU capacity reseller merely three years ago.

Eutelsat has announced that it will sell its retail business to a mysterious “experienced private operator”. The statement was brief and left many questions unanswered, leaving investors and industry analysts curious about the specifics of the deal.

The retail broadband business, known as KA-SAT, was launched in Europe in 2010 and provides internet access to users in remote areas where traditional terrestrial networks are unavailable. Despite being involved in the retail industry, Eutelsat encountered difficulties in gaining widespread customer adoption. As a consequence, Eutelsat sold its entire stake in KA-SAT to Viasat in April 2021, terminating their partnership that had started in November 2020.

In addition to the sale of its European retail broadband business, Eutelsat is currently seeking regulatory approval for its acquisition of OneWeb, a British low Earth orbit broadband operator. OneWeb relies on a network of distributors to sell its connectivity services to customers, which would complement Eutelsat’s existing operations and enhance its capabilities in the satellite communications market.

This move by Eutelsat marks a significant shift in its strategy. The company has long been focused on expanding its presence in the retail broadband market, but this decision shows that they recognize the need to streamline its operations and focus on its core strengths. It remains to be seen how this move will impact Eutelsat’s prospects, but it is clear that the company is taking steps to position itself for success in the rapidly evolving satellite communications industry.

“The disposal comes in the wake of the considerable success of Eutelsat’s wholesale go-to-market model to distribute its satellite broadband capacity over Europe,” said a Eutelsat statement.

Apart from its retail broadband business in Europe, Eutelsat also has a presence in Africa that provides similar services. However, it’s important to note that this African arm of the business is not included in the sale and will continue to operate as usual. This move by Eutelsat is part of its broader strategy to streamline its operations and focus on core businesses, while at the same time exploring new opportunities.

Eutelsat is a French-based satellite operator that provides satellite communication services to clients in various industries, including broadcasting, telecommunications, and government. The company operates a fleet of satellites that provide coverage over Europe, Africa, the Middle East, Asia, and the Americas. Eutelsat offers a range of services, including direct-to-home broadcasting, broadband internet access, mobile connectivity, and government communications. The company was founded in 1977 and has its HQ in Paris, France.

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