Eutelsat Secures Major Satellite Order to Bolster OneWeb Constellation

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Eutelsat Communications has placed a significant new order with Airbus to expand its low-Earth-orbit (LEO) satellite network, OneWeb. The European satellite operator announced a contract for 340 additional satellites yesterday, reinforcing its long-term strategy to provide an alternative to SpaceX's Starlink system. This latest procurement brings the total number of newly ordered satellites to 440 when combined with a previous commitment.

The primary objective of this substantial order is to replace OneWeb's initial generation of satellites, which are approaching the end of their operational lifespan. OneWeb currently operates a constellation of over 600 satellites in orbit, making it one of only two global LEO networks and the sole one under European governance. The new satellites will incorporate several technological enhancements, including advanced digital channelizers designed to improve signal processing capabilities, network efficiency, and overall flexibility.

Manufacturing for the new batch will commence at the Airbus facility in Toulouse, with the first deliveries scheduled to begin by the end of 2026.

A Focus on Professional Markets and European Sovereignty

Eutelsat is deliberately positioning its OneWeb service within the professional B2B segment. Its business model targets fixed and mobile telecom operators, government clients, and connectivity services for the aviation and maritime industries. This approach distinguishes it from competitor Starlink, as Eutelsat is not pursuing the direct-to-consumer market.

This expansion underscores Eutelsat's ongoing transformation into an integrated GEO-LEO operator. The OneWeb constellation is viewed as a strategic asset for European sovereignty in satellite communications—a consideration gaining importance amid current geopolitical tensions. The investment is aimed at maintaining technological competitiveness against U.S. rivals and addressing rising demand for reliable connectivity in critical sectors.

Key Details of the Agreement:
* A firm order for 340 new OneWeb satellites has been placed with Airbus Defence and Space.
* The total order volume now stands at 440 new satellites, including an order from December 2024.
* Production will be based in Toulouse, with satellite deliveries starting in late 2026.
* The satellites feature upgraded technology, such as advanced digital channelizers for superior signal processing.

Upcoming Financial Scrutiny

Market attention will now turn to Eutelsat's upcoming quarterly results, scheduled for release on February 13. Analysts are expected to closely examine the integration progress of the OneWeb business and the financing structure supporting these ambitious expansion plans. This substantial satellite order will significantly shape the company's capital expenditure planning for the coming years.