Photo: Via Satellite archive

In a new feature, we round up and put into context the most recent news involving the major satellite operators. The week of Dec. 7 was a relatively quiet one as the big players in the industry prepare for what is likely to be a pivotal 2021. Over the last few days, SES closed a slew of broadcast deals, Inmarsat brought a major new satellite into service, Intelsat moved toward a future in aviation with Gogo, the FCC announced internet service subsidies, and Viasat published some interesting findings on the milsatcom market.

SES

SES extended a broadcast capacity deal in Germany. 1-2-3.tv, a German omnichannel auction platform, will continue broadcasting its Standard Definition (SD) and High Definition (HD) live auction program on SES satellites that reach over two million viewers via TV, online, and mobile apps. This was the second major broadcast deal that SES announced in recent days. Satellite TV viewers across sub-Saharan Africa will be able to continue watching German TV channels offered by Satelio in Namibia and Deukom in South Africa, thanks to a capacity renewal and extension.

Video remains an interesting business for SES given how much it has talked up its Networks business. This year, video fell below 60% of overall revenues for the first time which was a significant milestone for the company. However, Video is still a major revenue generator for SES as in the first nine months of 2020 it generated over 830 million euros ($1 billion) in revenue. While this was down over 8% compared to the previous year, it remains vital to the overall health of the company.

Intelsat

One of the biggest deals of the year, and maybe one of the most surprising, was Intelsat’s acquisition of Gogo’s Commercial Aviation business. It is a big statement of intent in the In-Flight Connectivity (IFC) arena for Intelsat. On Dec. 1, Intelsat announced its completion of the $400 million cash acquisition, which it hopes will give it a preeminent position of providing IFC service to the commercial aviation industry.

In an upcoming exclusive interview in the February edition of Via Satellite, Patrick Brannelly, vice president of Retail, In-Flight Entertainment (IFE) and Connectivity for Emirates said he believes vertical integration among In-Flight Connectivity (IFC) providers typically works out in favor of airlines. “We are a very low-margin business and removing middlemen — and I am not saying Gogo are middlemen — increases supply chain efficiency. I think part of this merger activity is the realization that In-Flight Connectivity is growing in importance,” he said.

In another upcoming interview for Via Satellite, Tal Kalderon, head of Entertainment and In-Flight Connectivity for El Al Airlines, also spoke about the deal. He said, “Beyond the economic move, it seems that there is significant technological improvement here. Reducing the number of service providers may outweigh the competition, and this may be reflected in the price the airlines will pay at the end.”

Inmarsat

Inmarsat had a significant milestone this week as the company announced that its GX5, the company’s newest, most powerful Geostationary (GEO) satellite to date has now entered into commercial service. The satellite was originally launched in late 2019. The satellite will provide additional capacity to Europe and the Middle East.

As we know, Inmarsat has made a great play in the IFC market, and a recent collaboration with Hughes was one of the more interesting deals of the year. In a recent interview with Via Satellite, Inmarsat CEO Rupert Pearce said he thinks Inmarsat is set to benefit from the technology advancements of its fleet that over the next few years in the aviation marketplace. “People can see our commitment to better and better services. I think this puts us in good shape for linefit procurements. We will see a more rapid migration from retrofit to linefit because of that shift. The nature of the pipeline will change. We are already seeing that. We have already picked up several wins this year, and we are confident of picking up another couple by the end of the year. By, the end of the year, it will not have been a bad year, but not an exceptional year either.”

Inmarsat also announced earlier this month that it had partnered with Pivotel and Addvalue Innovation to offer owners and operators of sport fishing vessels in the United States, a new connectivity solution. The collaboration will deliver both compliance with 2021 National Oceanic and Atmospheric Administration (NOAA) fisheries regulations and demand for reliable on-board satellite communications.

Viasat

This week the FCC released the anticipated results of the first round of its reverse auction to bridge the digital divide — and it was overall a win for fixed wireless internet providers like Charter Communications. Satellite operators Viasat, Hughes Network Systems and SpaceX all applied for Rural Digital Opportunity Fund (RDOF) subsidies, but only SpaceX came away with a significant award in Phase 1. SpaceX, with its Starlink Low-Earth Orbit (LEO) constellation, will receive $885.5 million over ten years to connect 642,925 sites in 35 states, the fourth-highest award amount. Hughes will receive about $1.3 million to connect 3,678 sites in Rhode Island — and Viasat did not receive any of its bids.

All three satellite operators have a large number of bids carried over to Phase 2, which is significant. In May of this year, Viasat CEO Mark Dankberg announced the company is scrapping its plans for a Medium-Earth Orbit (MEO) constellation in favor of a LEO option that may be eligible to receive RDOF subsides in Phase 2. At this point, auction participants are in a quiet phase until further filings are due at the end of January.

Also this week, Viasat announced a major new government milsatcoms study as well as a development in business aviation. In terms of aviation, the operator announced that its Ka-band no speed limit business aviation IFC service is now available on the super mid-size Gulfstream G280 airframe. The company has removed internet speed limits to G280 aircraft, which will enable passengers and crew an opportunity to maximize their in-flight experiences. The new Ka-band service plans enable concurrent use of business-critical productivity and entertainment apps from video-conferencing, accessing cloud content and email to enjoying high-definition streaming services, live TV, and more.

As for the milsatcom study, Viasat partnered with the Government Business Council (GBC) for the second annual version of this research. Interesting findings included the worrying conclusion that communication blackouts are still common, with Viasat saying that 97% of respondents reported a complete loss in connectivity at some point while working in the military.

The study also said that the majority (60%) of respondents think U.S communications technology is either behind or only on par with their adversaries, suggesting potentially dire implications relative to near-peer adversaries. The study also added that just over three quarters of the respondents believe that a focus on improvements to defense communications is much lower, or just on par, with other top priorities in their agency. So, there is plenty of food for thought here.