What does it take to deliver LEO satellite capacity to hundreds of jets over the next several years? Among other things, at least $250 million. That’s the minimum guaranteed value of the contract announced between Intelsat and Eutelsat–OneWeb this week at the Satellite conference in Washington, DC.
This expanded partnership with Intelsat represents a strong vote of confidence in the capabilities of the OneWeb satellite constellation, today and well into the future, as well as showcasing the necessity in today’s world for major satellite operators to be able to offer multi-orbit solutions to their customers.
– Eva Berneke, Chief Executive Officer of Eutelsat Group
The new agreement replaces the deal announced last year between the two companies, valued at $45 million. The updated contract value could expand to $500 million, should Intelsat exercise capacity options during the term.
And while the LEO capacity is certainly a significant factor in the contract, the original version also enabled access to a larger portion of Eutelsat’s HTS GEO assets, including EUTELSAT 172B, EUTELSAT 10B, and the future Flexsat.
With the additional capacity secured Intelsat is in a position to support its contracts to deliver multi-orbit inflight internet services to American Airlines, Alaska Airlines, Air Canada, and Aerolineas Argentinas, as well as its many other airline customers flying the 2Ku solution and future airlines. The company also notes the capacity could be used for other business segments. But the initial demand appears to be squarely focused on the IFC market.
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