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The next level
“ We ’ re investing in ground infrastructure across our network , especially in our teleports , where huge white concave dishes both transmit and receive signals from spacecraft . These teleports are connected to broader networks and are an important node in the global communications network . We must continue to invest in these strategic assets as well as new technologies to deliver communications even more efficiently and effectively .”
Returning to the evolution of the space and communications industry at large , David suggests that the emergence of new companies like SpaceX and Amazon ’ s Project Kuiper have accelerated innovation . “ Technology in our field has traditionally evolved at a moderate pace , but the last decade or so has seen a significant acceleration ,” he recalls . “ Recent developments have advanced capabilities to what we call high throughput satellites , which meaningfully increases the amount of bandwidth that can be uplinked and downlinked .”
Combined with growing demand for faster connectivity , new companies have capitalized on this opportunity and entered the industry with low Earth orbit ( LEO ) capabilities , operating in an orbit between 250-to-2000 kilometers from Earth . “ Starlink , Elon Musk ’ s company , for instance , set out to compete with traditional satellite communications companies by building and launching LEO satellites ,” David explains . “ With the increase in the pace of play and the introduction of new technologies , we recognized that we couldn ’ t just ‘ pedal faster ’ to keep up – we needed to reevaluate our position from a market perspective .
“ Our engineers and technology experts decided to take our operating model to the next level by investing in software defined satellites . Without getting too specific , the speed of connectivity and the security this will bring to the industry is unprecedented . While the catalyst for this move was increased competition , there was also an internal drive to continue being one of the world ’ s foremost leaders in the satellite communications industry .”
However , Intelsat ’ s strategy extends beyond altering the business model . Determined not to be outpaced by some of the fast-growing startups , the business recently executed a deal with SES , a Luxembourg-based satellite telecommunications network provider . SES is set to acquire Intelsat , and the two companies plan to merge operations post-closing .
Competitive position
“ SES is similar to Intelsat from a size and capability perspective , and although SES is purchasing us , we ’ re collectively viewing the deal as a merger ,” David elaborates . “ We ’ re currently going through regulatory approvals and hope to close sometime in the second half of 2025 . Intelsat already operates a large GEO portfolio , as does SES , but SES also owns and operates a medium Earth orbit ( MEO ) constellation . MEO is positioned between LEO and GEO , with unique capabilities to bring critical solutions to global customers .
“ Prior to the SES deal being signed , we also partnered with Eutelsat OneWeb , the Paris-based satellite communications company . Eutelsat ’ s CEO , Eva Berneke , and I sat down and saw just how powerful it would be to structure a partnership that offers dual orbit capabilities ( both
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