France government invests big in Eutelsat-OneWeb

According to the satellite company Eutelsat-OneWeb, the French government has now committed more than a billion dollars in investment capital to the company, doubling its stake to almost 30%.

France would more than double its stake in Eutelsat to nearly 30% as part of a $1.56 billion capital raise backed by multiple shareholders, bolstering the French operator’s plans to refresh its OneWeb constellation amid Starlink’s growing dominance.

The funds would be raised in two parts before the end of the year, Eutelsat announced June 19, a day after the French military agreed to buy OneWeb services over 10 years in a deal potentially worth up to one billion euros ($1.15 billion).

OneWeb itself almost went bankrupt until it was saved by cash from a major Indian investor and the government of the United Kingdom. This new deal means that the merged company is largely controlled by France, the UK, and India.

India tightens its satellite regulations for foreign companies

In what is a likely response to the increased military conflict with Pakistan, India’s government has announced new satellite regulations for foreign companies that will likely impact the operations of both Starlink and OneWeb.

The country’s Department of Telecommunications (DoT) announced 29 additional regulations May 5, citing national security interests, which also apply to companies that already hold licenses for providing space-based communication services directly to users.

The rules include a requirement for call logs and other user data to be stored in India, and new obligations for interception and monitoring under national law. Satellite operators must also show how they plan to source at least 20% of their ground infrastructure equipment from India within five years of commercial launch.

The article at the link suggests that these new regulations will have a greater impact on OneWeb than Starlink. Yet, OneWeb already has approval to sell its services in India, while Starlink has not.

The article also included one interesting tidbit from a Starlink official, noting that the company expects to have 6.5 million subscribers by the end of this year. Based on the company’s subscriber fees, that translates into many billions in revenue. Very clearly SpaceX no longer needs NASA to develop Starship.

Falklands government approves changes that will allow SpaceX to provide Starlink service

After a small negotiating kerfuffle, the executive committee of the Falklands government has now approved a major licensing fee change that will allow SpaceX to offer its Starlink service to island residences.

The Executive Committee (ExCo) of the Falkland Islands Government has officially approved a considerable reduction in the VSAT licence fee – it is “minded” to slash it from £5,400 to just £180 but it will stay at £5,400 until final agreement in ExCo in early May. This decision paves the way for Starlink to begin providing services in the Falkland Islands, creating a game-changing step towards modernising the Islands’ telecommunications.

It appears that getting this approval required a major grassroots effort, as the government had initially been reluctant to change anything, despite the fact that numerous people were already using Starlink terminals illegally because there were no other options for good internet access, especially because the government’s deal with OneWeb had produced no results.

Eutelsat-Oneweb uses its satellite constellations to test technology for phone-to-satellite capabilities

The communications company Eutelsat-Oneweb announced today that it has successfully tested the technology that would allow smartphones to use its satellite constellations as orbiting cell towers in order to eliminate dead zones in their ground-based systems.

Based on the press release, it is unclear whether the tests actually included a cell phone.

The trial used Eutelsat OneWeb satellites, with the MediaTek NR NTN test chipset, and NR NTN test gNB provided by ITRI, implementing the 3GPP Release 17 specifications. Sharp, Rhode & Schwarz provided the antenna array and test equipment and the LEO satellites, built by Airbus, carry transponders, with Ku-band service link, Ka-band feeder link, and adopt the “Earth-moving beams” concept. During the trial, the 5G user terminal successfully connected to the 5G core via the satellite link and exchanged traffic. [emphasis mine]

That user terminal might have been a smart phone, or it could have been an engineering test terminal.

Either way, Eutelsat-Oneweb appears to be aggressively trying to enter the competition for cell-to-satellite business, competing with the systems already operational from Starlink and AST SpaceMobile.

OneWeb is years behind schedule in activating its service in the Falklands

Despite contracts with the local government that said service would begin in 2023, OneWeb has still not activated its service in the Falklands, and that government is considering switching to Starlink as it considers legal action to recover its money.

Local reports say that the Falkland Islands government “wants its money back” from an agreement which it entered into with local telco SURE and which provides national and international fixed line, mobile data and broadband services as well as data centre and enterprise solutions to consumer and corporate customers. SURE is part of Bahrain’s Batelco Group and SURE’s coverage extends to the Ascension Islands and Saint Helena in the South Atlantic.

The problem is seemingly OneWeb. Mark Pollard, a member of the Falkland’s Legislative Assembly, speaking on January 30th, said that the telco had failed to introduce a promised service from OneWeb, which itself was supplied with capacity from Eutelsat and prime contractor Intelsat.

The article at the link does not provide any explanation for the delay. It is probably related to OneWeb’s requirement for ground stations to connect the local communications network with the satellites. There must be issues building those ground stations. Starlink meanwhile provides antennas to customers which connect directly to the satellites.

The article also notes the company’s stock value has been plummeting, dropping 62% in the past six months.

Eutelsat-OneWeb stock plummets

Despite its merger with Eutelsat in 2023, the stock value of the combined Eutelsat-OneWeb satellite company has plummeted in the past year, more than halving the value of the OneWeb portion that was saved from bankruptcy by both the government of the United Kingdom and investors from India in 2020.

The collapse means the UK’s investment is worth €133m (£110m), representing a near £300m paper loss for the taxpayer. … However, while the all-share deal implied a value of €12 per share, Eutelsat’s stock has since imploded. In the past 12 months, it has halved and is trading at record lows of €2.58.

Eutelsat was facing its own collapse before the merger, as its business was geosynchronous communications satellites which are now losing their business to the low-Earth orbit constellations such as SpaceX’s Starlab and OneWeb’s. The merger was the company’s attempt to join this new market.

OneWeb however has had its own repeated problems completing that its constellation, and faced bankruptcy in 2020 because of delays from the COVID panic as well as delays in launching the Ariane-6 rocket. Then Russia’s invasion of the Ukraine in 2022 meant it lost all its remaining planned launches, forcing it to scramble to find other launch providers.

Stock market analysts don’t expect the combined company to begin earning profits for at least the next three to five years, which casts an even greater pall on its future.

Eutelsat-OneWeb gets license approval in India

Less than two weeks after SpaceX obtained regulatory approval to offer its Starlink system in India, Eutelsat-OneWeb (newly merged) has now gotten its own approval.

Eutelsat-OneWeb is half owned by an Indian investment firm, so it is no surprise it obtained this approval soon after SpaceX. The two companies will now be competing aggressively for business in this giant country, whose technological capabilities has been renewed in recent years by the abandonment of a socialist/communist government for a leadership focused on encouraging freedom, capitalism, and competition.