The UK’s Competition and Markets Authority (CMA) has approved the merger of satellite communications firms Viasat and Inmarsat following an in-depth Phase 2 review.
The transaction was referred for further investigation after an initial Phase 1 assessment raised concerns about potential impacts on competition.
During the Phase 2 review, the CMA examined a wide range of evidence, including internal documents from the merging parties and rivals, submissions from airlines, and its own analysis of the satellite market.
Although Viasat and Inmarsat are direct competitors in providing satellite connectivity for in-flight Wi‑Fi, the CMA panel concluded the merger would not substantially lessen competition for UK customers. The panel also noted the sector’s rapid expansion and the entry of new competitors such as SpaceX’s Starlink, which has already secured a contract with a European airline.
Clearing the merger is consequential for the industry: it allows the two companies to combine resources and capabilities, potentially delivering enhanced satellite connectivity services to commercial customers.
Both Viasat and Inmarsat supply satellite-based internet, email, and video-calling services to businesses worldwide, including offerings tailored for aircraft operators and passengers.
The combined business will be positioned to provide a broader portfolio of services and to compete more effectively against other providers in the market.
The CMA’s decision reflects its assessment that the satellite communications industry is highly dynamic and evolving quickly, with new satellites being launched, competitors entering the field, and firms negotiating fresh commercial agreements.
This ruling arrives as demand for satellite connectivity accelerates, driven by growing internet usage among businesses and consumers and by airlines’ increasing requirements for onboard connectivity.
Alongside Starlink, other players such as OneWeb are investing heavily to build global constellations and expand connectivity options for airlines.
Established providers, including Panasonic and Intelsat, are also collaborating with newer entrants to strengthen their airline offerings. The ongoing expansion of the sector is expected to benefit airlines and passengers by delivering a wider range of connectivity choices and downward pressure on costs.
(Photo by Katya Ross on Unsplash)
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