Eutelsat's LEO earnings surge by 84% as governments exhibit declining interest in Starlink's services.
In the rapidly evolving world of satellite broadband, Elon Musk's Starlink has been a frontrunner, providing invaluable connectivity during disrupted communication networks, especially in Ukraine. However, the mixed messaging from the US President Donald Trump's administration has led governments and commercial organizations to consider alternatives.
One such alternative is Amazon's Project Kuiper, a major LEO network planned with over 3,200 satellites. The aim is to provide affordable, high-speed broadband, targeting rural and underserved areas globally. Project Kuiper leverages Amazon's cloud and launch partnerships and is expected to start residential services in late 2025, posing a direct challenge to Starlink.
Another contender is OneWeb, a LEO satellite broadband provider focusing on global coverage through partnerships. With a hybrid strategy integrating LEO and geostationary satellites, OneWeb targets enterprise, government, and telecom integrator customers, emphasizing network resilience and coverage redundancy.
Telesat Lightspeed, a LEO satellite constellation planned for 2026–2027, focuses on enterprise and government clients. It offers features such as secure, jam-resistant communication and seamless integration with Telesat's existing GEO satellites, differentiating it from Starlink's broader mass-market focus.
Geostationary Satellite Operators, such as Viasat and HughesNet, while using higher altitude satellites and facing inherent speed and latency disadvantages compared to LEO systems like Starlink, remain significant competitors, especially in rural and remote markets. They are expanding capabilities and deploying next-generation satellites to improve service.
Other alternatives include SES S.A., Inmarsat, and national initiatives like Australia's NBN Sky Muster, providing geostationary or hybrid satellite internet services, offering alternatives especially in specific regions.
Eutelsat, a major player in the satellite industry, has also entered the fray. The growth of LEO-enabled solutions and increased demand from non-US governments contributed to the growth of Eutelsat's Government Services. Eutelsat posted total revenue of €1.244 billion for fiscal 2025 ended June 30, up 1.6 percent year-on-year. Government Services revenue for Eutelsat jumped 24.1 percent to €211 million. In addition, Eutelsat reported Fourth Quarter revenues of €65 million, up by 40.9 percent year-on-year and 37.9 percent quarter-on-quarter. Video revenue for Eutelsat fell 6.5 percent to €608 million, but LEO revenue was up 84.1 percent to €186.8 million.
Elon Musk's Starlink satellite broadband service has come under scrutiny, and these emerging LEO networks and improved GEO services aim to intensify competition by offering varied service models, enhanced security, and global connectivity options beyond Starlink’s current capabilities. The future of the satellite broadband market is shrouded in anticipation as these new players enter the fray.
- Artificial intelligence (AI) has a significant role to play in the future of satellite broadband, with companies like Amazon, OneWeb, Telesat Lightspeed, and Eutelsat leveraging AI for network optimization, customer service, and security enhancements.
- Finance and space-and-astronomy sectors are closely intertwined in the satellite industry's growth, as investments in satellite broadband networks by companies like Starlink, Amazon's Project Kuiper, OneWeb, Telesat Lightspeed, and Eutelsat depend on stable and profitable financing arrangements to compete effectively and expand their infrastructure globally.
