- SES and Intelsat operate a combined fleet of 120 satellites
- The new SES plans to explore investments in IoT and D2D, among other areas
- The closure of the acquisition brings the U.S. closer to another C-band spectrum auction
SES today announced the completion of its $3.1 billion acquisition of Intelsat, bringing together two major geostationary Earth orbit (GEO) satellite operators to better compete against the likes of low Earth orbit (LEO) rivals like SpaceX’s Starlink and Amazon’s Project Kuiper.
The combined company will operate with a fleet of about 90 GEO satellites and nearly 30 medium Earth orbit (MEO) satellites, with access to LEO satellites through partnerships. Complementary spectrum bands include C-, Ku-, Ka-, military Ka-, X-band and Ultra High Frequency.
Once fully integrated, SES will be in a stronger position to serve customers in government, aviation, maritime and media markets.
“Our focus is clear: to grow, to lead in high-potential markets, and to shape the future of our industry,” said SES CEO Adel Al-Saleh in a statement. “This is a long-term play, and we are building with the future in mind – growing year after year, expanding our capabilities, and creating lasting value for our customers and shareholders alike.”
Luxembourg-based SES expects the transaction to provide a more robust financial foundation for the combined company, with pro forma revenue of $4.2 billion projected to grow at a low- to mid-single digit CAGR.
The stronger financial profile will enable SES to invest an estimated at $695 million to $753 million annually in emerging segments and new technologies to explore new growth markets such as IoT, direct-to-device, inter-satellite data relay, space situational awareness, Earth observation and quantum key distribution, the company said.
SES acquisition paves way for auction
SES and Intelsat were among the satellite companies that freed up C-band spectrum several years ago, which Verizon and AT&T are now using for 5G. The expectation is that with the merger and consolidation of networks, they will free up more upper C-band (3.98-4.2 GHz) spectrum for auction in the U.S.
Currently, the Federal Communications Commission (FCC) is arranging an auction of AWS-3 spectrum, which will help pay for the government’s Rip & Replace program. But the first major government auction of spectrum during FCC Chairman Brendan Carr’s tenure is likely to be that of the upper C-band, New Street Research analyst Blair Levin said in a note for investors today.
Carr launched a formal inquiry earlier this year into ways of making use of 220 megahertz in the upper C-band.
Last week ,CTIA President and CEO Ajit Pai and CTIA SVP Scott Bergmann met with newly seated FCC Commissioner Olivia Trusty to rally her support for the FCC moving quickly to make additional spectrum available in the AWS-3 band and upper C-band.
During the meeting, CTIA talked about the importance of the One Big Beautiful Bill Act that President Trump signed into law on July 4. The law included the restoration of the FCC’s general auction authority and a mandate to auction upper C-band spectrum within two years.
“Upper C-band spectrum will deliver more of the capabilities and capacities that C-band frequencies enable today,” CTIA told the FCC in a July 14 ex parte filing. “CTIA urges the FCC to move swiftly toward seeking comment on proposed timelines for auctioning, transitioning and opening upper C-band spectrum for full-power terrestrial wireless use.”