SES and Intelsat: New SES Could Invest in More Satellites
A SES purchase of Intelsat will let the combined companies better compete with the "robust and growing competition" they face, particularly from non-geostationary orbit (NGSO) satellite entrants but also terrestrial connectivity, SES and Intelsat said in a docket 24-267 filing…
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posted Friday. SES is seeking approval of license transfers as part of its proposed $3.1 billion purchase of Intelsat (see 2405310004). Combining SES' multi-orbit constellation with Intelsat's complementary suite of geostationary orbit assets and extensive ground network will give New SES a multi-band GSO fleet, a stronger medium orbit system (MEO) and a cloud-based open network architecture, they said. New SES will be better positioned to make long-term investments in satellite capacity, they said. Currently each operator on its own might have difficulty closing the business case to invest in a replacement satellite because of fragmented demand; however, New SES will have the resources, cost structure and better business case for investing in its satellite fleet. The deal also would make investment in a next-generation MEO system more likely, they said. New SES will boast a GSO/MEO constellation "with the necessary throughput, capacity, range, and latency characteristics to enable the combined company to more vigorously compete, including with well-financed [low earth orbit] competitors," they said. They said New SES can be more efficient with satellite capacity use, freeing more usable, contiguous band spectrum to provide other services. They said that since both count the U.S. government as a customer, New SES "will support national security by creating an even more reliable partner and supplier that offers a resilient, secure, highly capable, and seamless satellite network operating in multiple orbits and frequency bands."