PRIVATE NETWORKS Private 5G airborne networks transform outside broadcast for France TV and RAI Impact & statistics Challenge Challenges Broadcasters are facing shrinking budgets and growing pressure to cover smaller or mid-tier outdoor events. Traditionally this requires a helicopter transmitting to a high-altitude aircraft at 9,000 ft, supported by vans, trucks, engineers and high-power RF systems – an expensive, carbon- intensive "flying infrastructure stack". France TV and RAI sought a cleaner, cheaper ...

Core Viewpoint - Amazon has received approval from the FCC to deploy an additional 4,500 satellites, expanding its total to approximately 7,700 satellites as part of its second-generation Leo satellite internet project, aiming to compete more effectively with SpaceX's Starlink [2][3]. Group 1: Amazon's Satellite Deployment - The FCC requires Amazon to complete 50% of the new satellite launches by February 2032 and all deployments by February 2035 [3]. - Amazon's first generation of 1,600 satellites has been delayed from July 2026 to July 2028 [3]. - The new satellites will enhance coverage and spectrum utilization, particularly in polar regions, which is crucial for expanding services in Arctic areas and energy sectors [3]. Group 2: Competitive Landscape - SpaceX's Starlink remains the largest player in the low Earth orbit satellite market, with thousands of satellites launched and a significant market share, covering over 100 countries and generating annual revenues in the billions [6]. - OneWeb, known as the European version of Starlink, has completed the deployment of its first generation of approximately 600 satellites and is experiencing rapid revenue growth in its low Earth orbit business [6]. - China's low Earth orbit satellite deployment is accelerating, with significant government support and strategic initiatives, including the "StarNet" project and the "Qianfan Constellation," which aim to deploy thousands of satellites by 2030 [7][8]. Group 3: Market Dynamics and Future Outlook - The global low Earth orbit satellite market is expected to grow rapidly, with increasing competition among major players like SpaceX, Amazon, and Chinese companies [4][6]. - Analysts suggest that Amazon's entry into the market is strategically aimed at capturing growth opportunities in the satellite internet sector, despite the challenges of high investment and long payback periods [4]. - The competition is intensifying, with the U.S. focusing on commercial viability while China aims for technological advancements and global standards in satellite deployment [8].

Core Viewpoint - Eutelsat emphasizes that the upcoming IRIS2 satellite network must meet customer expectations regarding pricing and performance to be commercially viable, especially in comparison to competitors like Starlink and Amazon's LEO [1] Group 1: Project Overview - The IRIS2 satellite network has a budget of approximately 10.6 billion euros ($12.6 billion) and is expected to start operating around 2029 [1] - Eutelsat plans to launch its next-generation OneWeb satellites alongside IRIS2 after 2030, with the new satellites being significantly more advanced than the current fleet [1] Group 2: Market Competition - Major telecom companies, including Orange and Deutsche Telekom, have indicated that the European system must be competitive with Starlink and Amazon's planned low Earth orbit network to attract customers [1] - Orange and Telekom executives highlighted that performance, security, and cost will be key factors influencing customer choice in satellite services [1] Group 3: Industry Insights - Eutelsat's CEO, JeanFrançois Fallacher, noted that the market is expecting competitive services and pricing, reflecting sentiments from industry leaders [1] - The current first-generation fleet of OneWeb satellites, consisting of 600 units, is based on technology that is a decade old, while U.S. competitors are advancing with newer satellite deployments [1]

Core Insights - The company reported a decline in video revenue by 12.3% to EUR 260 million, attributed to sanctions on Russia, with an expected impact of EUR 16 million for the full year 2025-2026 [1] - Total revenue for the first half was EUR 592 million, stable on a like-for-like basis but down 2.4% on a reported basis, with LEO revenues increasing nearly 60% [3][4] - The company has made significant progress in its OneWeb satellite procurement and refinancing efforts, which are crucial for its strategic continuity [5][16] Financial Performance - "Other revenues" amounted to EUR 18 million, including EUR 8 million from hedging operations related to the IRIS² project [2] - Adjusted EBITDA for the half year was EUR 308 million, down 6.1% like-for-like, with a margin of 52.1% [13] - The net loss narrowed to EUR 236 million from EUR 873 million a year earlier, with lower depreciation and amortization contributing to this improvement [6][14] Connectivity Revenue Breakdown - Total connectivity revenues reached EUR 307 million, up 11.8%, with LEO revenues rising to EUR 110.5 million, offsetting a decline in GEO revenues [7][8] - Fixed connectivity revenue was EUR 132 million, up 17.2%, driven by growth in connectivity solutions [9] - Government services revenues increased by 7.7% to EUR 99 million, reflecting growth in LEO-enabled solutions [10] Strategic Developments - The company procured an additional 341 OneWeb satellites, bringing the total to 440, and signed a multi-launch agreement with MaiaSpace [19] - Management is advancing the IRIS² consortium work and is in a key phase with the European Commission [20] - The halted ground-segment sale is expected to positively impact EBITDA margins by up to 5 points [18] Refinancing and Capital Expenditure - A EUR 1.5 billion capital raise was completed, followed by rating upgrades from Moody's and Fitch [16] - Full-year gross CapEx guidance was revised to around EUR 900 million, down from a previous range of EUR 1.0 billion to EUR 1.1 billion [15] - Net debt was reported at EUR 1.3 billion, with a net debt to adjusted EBITDA ratio of 2.0x [17]

Core Viewpoint - Eutelsat reported better-than-expected revenue, driven by France's initiatives to develop a European competitor to Elon Musk's Starlink, which supports the company's shift towards internet services [1] Group 1 - Eutelsat's revenue performance exceeded expectations [1] - France's efforts to create a European alternative to Starlink are positively impacting Eutelsat [1] - The company is pivoting its focus towards internet services [1]

Core Insights - Eutelsat has secured approximately 1 billion euros ($1.2 billion) in export credit financing [1] Company Summary - The financing will be utilized for the procurement of low Earth orbit satellites for Eutelsat's OneWeb constellation [1]

Core Viewpoint - Amazon is seeking a 24-month extension from the FCC to meet its satellite deployment deadline due to delays caused by external factors, aiming to compete with SpaceX's Starlink [3][4][9]. Group 1: Satellite Deployment and Network Plans - Amazon has committed at least $10 billion to develop its satellite network, now branded as Amazon Leo, which aims to provide internet services from space [2]. - The company has launched over 150 satellites since April and plans to deploy approximately 700 satellites by July 30, moving towards becoming the second-largest satellite constellation in orbit [7]. - Amazon has booked more than 100 launches and recently secured 10 additional launches with SpaceX and 12 with Blue Origin [5]. Group 2: Challenges and Delays - The company cites a shortage of rocket availability, manufacturing disruptions, and limitations on spaceport capacity as reasons for the delays in satellite deployment [3][6]. - Amazon's request for an extension is also based on the extended development timelines of next-generation launch vehicles, which have exceeded initial projections [6]. Group 3: Competitive Landscape - Amazon Leo's primary competitor is SpaceX's Starlink, which has over 9,000 satellites and approximately 9 million customers, while OneWeb operates with more than 600 satellites [8]. - Amazon has initiated an "enterprise preview" of Leo to select users ahead of a broader commercial launch [8]. Group 4: Regulatory Considerations - The company argues that denying the extension would undermine the FCC's goals of expanding spectrum access and promoting rapid deployment, noting that similar extensions have been granted in the past [9]. - Amazon emphasizes that an extension would facilitate ongoing deployment efforts, while strict enforcement of deadlines could disrupt its plans [10].

Core Viewpoint - The French government has blocked Eutelsat's sale of its ground antennas due to national security concerns, emphasizing the strategic importance of the company as the main European competitor to Starlink [1][2]. Group 1: Sale Blockage - The French Finance Minister Roland Lescure stated that the antennas are critical for both civilian and military communications, leading to the decision to block the sale [1]. - Eutelsat's shares fell by 5% following the announcement of the blocked sale [2]. - The planned sale to Swedish private equity firm EQT was expected to generate net proceeds of approximately 550 million euros ($656 million) [3]. Group 2: Financial Implications - Despite the blocked sale, Eutelsat anticipates a 5% increase in profit margins over the next three years due to savings from no longer leasing the antennas [3]. - The company has a significant contract with the French army, valued at 1 billion euros, for satellite services [4]. Group 3: Government Involvement - The French government holds a 29.6% stake in Eutelsat, making it the largest shareholder [2]. - The state will retain its "golden share" in the company, ensuring continued influence over strategic decisions [5]. - Efforts to find a French or European buyer for the defense firm LMB Aerospace were unsuccessful, indicating challenges in securing domestic investments [5].

Core Viewpoint - The French Finance Minister Roland Lescure has decided to prevent Eutelsat, a French satellite operator and competitor to Starlink, from selling ground antennas, indicating a regulatory intervention in the satellite communications market [1] Group 1: Company Overview - Eutelsat is positioned as a rival to Elon Musk's Starlink in the satellite communications sector, highlighting the competitive landscape in this industry [1] Group 2: Regulatory Actions - The decision by the French government to restrict Eutelsat's ability to sell ground antennas reflects ongoing regulatory scrutiny and intervention in the satellite communications market [1]

Core Viewpoint - The increasing geopolitical tensions and the actions of the Trump administration have led countries to prioritize satellite sovereignty, investing in domestic satellite infrastructure to ensure stable communication, data, and intelligence transmission [1][8]. Defense Strategy - Countries are establishing their own satellite assets as part of broader efforts to increase defense spending, highlighting the strategic importance of satellites in national security, especially in light of recent conflicts like the Russia-Ukraine war [9]. - The experience of Ukraine with the Starlink satellite network has prompted Europe to develop the IRIS2 system, which aims to provide secure communication for governments and address internet connectivity gaps [10]. National Interests - Industry insiders predict that spending on space-related projects will increase in the coming years, creating new sales opportunities for companies in this sector [3][11]. - The U.S. Department of Defense is becoming a key customer for satellite operators due to its substantial budget, with companies like Blue Origin and Planet Labs securing contracts related to national security [11]. - Planet Labs has recently announced agreements with the Swedish Armed Forces and other nations to provide satellite and data support, reflecting the growing demand for satellite services driven by geopolitical factors [5][11][12]. - Governments are increasingly supporting domestic companies as a means to achieve security and strategic goals, exemplified by Canada's $1.6 billion loan to Telesat for its Lightspeed satellite communication network [11][12].