Europe's $3.1 billion satellite merger is not expected to compete with Musk's Starlink.
Two major satellite companies are preparing to establish a European competitor to Starlink. However, they will encounter significant challenges in competing against Elon Musk's company. Luxembourg-based SES is poised to receive approval from EU regulators for its proposed $3.1 billion acquisition of Intelsat, according to Reuters. A final decision is anticipated by June 10.
SES first revealed its intention to acquire the Luxembourgish-American rival Intelsat in April 2024, describing it as a "transformational merger" that could alter the satellite internet landscape.
The combined entity would operate a fleet of over 100 geostationary satellites and 26 medium Earth orbit satellites. Intelsat is expected to contribute 75 of these satellites, which offer a variety of services, such as television, radio, satellite internet, and secure communications for government and military use.
A merger between SES and Intelsat would establish the second-largest satellite internet provider in Europe, following the Franco-British company Eutelsat. Smaller competitors include the UK's Inmarsat and Spain's Hisdesat.
Together, the European satellite companies could provide much-needed alternatives to Musk's Starlink or Amazon's Project Kuiper, especially as technology sovereignty gains importance on the political agenda.
European leaders are increasingly apprehensive about depending on Starlink. Their concerns have been heightened by reports suggesting that US officials warned of potentially disabling the system in Ukraine if the nation did not comply with demands regarding its mineral resources.
This situation has raised questions about the security ramifications of Ukraine—and greater Europe—being reliant on a single, privately owned network managed by someone with direct associations to the Trump administration. Eutelsat, SES, Inmarsat, and Hisdesat reportedly began discussions with EU governments in March regarding providing alternative connectivity to Ukraine.
Despite the SES-Intelsat merger resulting in a more powerful European entity, this new alliance will still face significant hurdles against Starlink’s supremacy.
Musk's company significantly outnumbers its rivals, boasting over 7,000 satellites in low-Earth orbit (LEO), while its nearest competitor, Eutelsat, has around 600. Meanwhile, Amazon's Project Kuiper aims to deploy a constellation of 3,236 satellites.
Belonging to SpaceX grants Starlink direct access to satellite manufacturing and launch capabilities. In contrast, SES and Intelsat rely on external launch service providers and currently lack their own low-Earth orbit network. While Intelsat has a $250 million agreement to utilize Eutelsat's LEO capacity, this dependence on external networks puts the merged company at a disadvantage.
Even when combined with other European players—like Eutelsat, Inmarsat, and Hisdesat—the proposed merger still falls short. As European policymakers advocate for greater strategic independence in space, the SES-Intelsat merger may represent progress, yet it remains far from establishing a true competitor to Starlink. Europe's tech sovereignty will be a prominent topic at the TNW Conference, occurring on June 19-20 in Amsterdam. Tickets for the event are currently available; use the code TNWXMEDIA2025 at checkout for a 30% discount.
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Europe's $3.1 billion satellite merger is not expected to compete with Musk's Starlink.
Two major satellite companies are on the verge of creating a European competitor to Starlink. However, they will encounter significant challenges in trying to compete with Elon Musk’s company.