Two of the commercial satellite industry’s largest operators are combining forces to strengthen their position against the rapid expansion of low-Earth orbit (LEO) broadband constellations led by SpaceX’s Starlink.
In a $3.1 billion transaction announced Tuesday, Luxembourg-based SES will acquire rival Intelsat, forming a combined fleet of roughly 100 satellites in geostationary orbit (GEO).
The merged company will have more than twice the number of active GEO satellites compared with its nearest competitor, a strategic response as traditional satellite operators face growing pressure from LEO mega-constellations.
Longstanding customers—such as television broadcasters and defense organizations—continue to value the broad coverage and operational stability of GEO satellites. At the same time, consumer and enterprise demand is accelerating for the low-latency connectivity that LEO networks provide by operating only a few hundred miles above Earth.
“In a fast-moving and competitive satellite communication industry, this transaction expands our multi-orbit space network, spectrum portfolio, ground infrastructure around the world, go-to-market capabilities, managed service solutions, and financial profile,” said SES CEO Adel Al-Saleh.
“Customers will benefit from a more competitive portfolio of end-to-end solutions in important Government and Mobility segments, alongside efficient and reliable offerings for Fixed Data and Media customers. This combination also creates new opportunities for supply chain partners and advances the industry as satellite-based solutions become increasingly integral to the wider communications ecosystem.”
Starlink juggernaut
SpaceX’s Starlink dominates the LEO broadband market, having launched more than 5,800 satellites so far and planning many more. Starlink satellites are produced at far lower unit cost than traditional, larger GEO spacecraft, allowing SpaceX to rapidly scale a global constellation.
Starlink’s LEO architecture delivers latency levels unattainable from distant GEO orbits, a critical advantage over space-based internet offerings that rely on a limited number of high-capacity GEO satellites, such as ViaSat and Hughes. SpaceX reports that Starlink now serves over 2.6 million subscribers.
To remain competitive amid the LEO revolution, established operators are pursuing mergers and acquisitions. Eutelsat merged with OneWeb last year to offer hybrid GEO-LEO services, and ViaSat acquired maritime-focused Inmarsat.
The SES-Intelsat deal is the largest of its kind to date in terms of combined GEO asset scale. SES currently operates 43 GEO satellites plus 26 broadband satellites in medium-Earth orbit, while Intelsat contributes around 57 active GEO satellites primarily used for video transmission.
Additionally, the two companies have 13 satellites in production—six GEO platforms and seven next-generation hybrid broadband satellites for medium-Earth orbit. Earlier this year, Intelsat secured $250 million of capacity on OneWeb’s LEO constellation, underscoring its multi-orbit approach.
Hedging bets
Although both firms reaffirm their commitment to GEO investments that serve core markets, the merger is widely viewed as a strategy to buffer their businesses from continued LEO disruption by broadening their presence across multiple orbits.
Their combined scale and vertical integration could help counterbalance Starlink and other LEO entrants by enabling faster deployment of multi-orbit architectures and managed network services. Still, LEO’s inherent latency advantage will continue to benefit newer broadband providers.
“Over the past two years, the Intelsat team has executed a remarkable strategic reset,” said Intelsat CEO David Wajsgras. “We have reversed a 10-year negative trend to return to growth, established a new and game-changing technology roadmap, and focused on productivity and execution to deliver competitive capabilities. Today we provide our customers with network performance at five 9s and remain committed to engagement and delivering on our promises. This strategic pivot lays the foundation for Intelsat’s next chapter.”
The SES-Intelsat combination highlights how Starlink’s aggressive LEO build-out has reshaped the global satellite services market, prompting incumbents to pursue bold realignments simply to remain competitive.
(Photo by Lance Grandahl)
See also: EU antitrust chief warns against telecoms mergers
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