Intelsat chooses $500 million hybrid solution to boost the reach of its satellite telecom services

March 21st 2024

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Satellite telecoms service provider Intelsat wants to rely on multi-orbit satellites to strengthen its reach. The company announced on Tuesday March 19 a new agreement with the Eutelsat Group to combine Eutelsat OneWeb’s low-orbit (LEO) satellite constellation with its own geostationary satellite (GEO) and terrestrial network offerings.

The new agreement represents a $500 million investment over seven years, with an initial commitment of $250 million and an option for an additional $250 million at the end of the contract. It will see Intelsat collaborate on the development of Eutelsat’s OneWeb constellation by providing direct design and functionality input.

Integrating the LEO option with geostationary satellites enhances Intelsat’s infrastructure by reducing latency, increasing capacity, expanding coverage and strengthening network resiliency. This hybrid GEO/LEO approach should therefore make it possible to improve the quality and extent of the company’s network to better meet the demands of its customers around the world.

In Africa, where Intelsat is present, this initiative can help generalize access to mobile connectivity services even in rural, remote and difficult-to-access areas. According to the Global Association of Telephone Operators and Manufacturers (GSMA), sub-Saharan Africa had 489 million unique mobile subscribers at the end of 2022 for a penetration rate of 43%. In North Africa, the penetration rate of mobile phone services was 67%.

Source: Agency EcoFin

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