Explained | Eutelsat-OneWeb merger: Why the union of GEO and LEO satellites is significant?

There are two kinds of satellites that take care of most civilian and commercial needs - the ones that are placed 36,000kmabove the earth (Geostationary satellites) and the ones that are roughly 1200kmabove the earth (Low earth satellites). The former enableTV broadcast services, satellite-phone communications and internet connectivity, while the latter beamdown high-speed internet that can be used for contemporary purposes such as online gaming, video-conferencing etc. French-firm Eutelsat, which specialises in Geostationary satellites announced a mergerwith UK-based OneWeb, which specialises in Low Earth orbit satellites. The resultant entity will henceforth be known as Eutelsat Group.

This latest deal in the space-based telecommunications sector is being touted as the birth of the world's first GEO (Geostationary Orbit) and LEO (Low Earth Orbit) operator. This merged entity now possesses the power and business potential of being able to provide the aforementioned applications of space technology.

"With OneWeb’s network of more than 600 satellites already active and set to be globally operational by end of 2023, the combined GEO-LEO service will open up new markets and applications for customers, including Fixed Connectivity, Government Services and Mobile Connectivity (Maritime and Inflight). Broadcast and video services will remain integral to Eutelsat Group’s business and continue to deliver unparalleled and innovative services for customers, including new IP native video services, at the convergence of broadband and broadcast," the merged entity said.

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Sunil Bharti Mittal, Vice-President (Co-Chair) of the Board of Directors, commented “This exciting combination will be transformative for communities and businesses worldwide, utilising the unique blend of GEO and LEO technologies. Closing the digital divide is a critical mission for Eutelsat Group and the combination of these two businesses, which have each pursued this goal separately, accelerates our progress."

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Geostationary satellites have a peculiar nature. When looked at from earth, they always appear to be in a constant position at all times. This is because they move at the same speed at the earth's rotation. Being as far above from the earth, three equally-spaced geostationary satellites are capable of providing near-total global coverage. Given that these satellites appear fixed in the sky, the ground-based antennae can be pointed at a fixed direction in the sky (like the DTH antennae at homes). However, the regions near the earth's poles would find it very challenging to receive signals from these satellites. Also, there is a considerable amount of lag due to the long distance between the satellite and earth. Therefore, it is not ideal for telephony and video-calling.

Low Earth satellites orbit the earth at an altitude of 600-1200kms and they travel at high speeds of approximately 28,000kmph. Therefore, a single satellite would be visible from one point on earth only for a handful of minutes, which also means that each satellite offers coverage only over a small area at a time. In order to operate any service from LEO, one would require a fleet of satellites covering the earth and performing a sort of endless relay race - where one takes over after the other. Being close to the earth, it is possible to rapidly beam down internet signals from these satellites and use internet on-board flights, ships and even on the ground for high-speed utilities such as video-calling, online gaming etc.

Given the specific advantages and disadvantages of LEO and GEO satellites, the users prefer a hybrid model that offers a best of both worlds.

Eva Berneke, Chief Executive Officer, said, “Eutelsat Group is the only GEO-LEO operator in satellite communications that can offer a ubiquitous connectivity service. Global connectivity is an important and exciting challenge to deliver upon. We can address a wider range of customer requirements and provide hybrid connectivity services where they are required worldwide, all with industry leading resilience.”

Queried about how the diverse GEO and LEO systems of the combined entity would be used, a company spokesperson told WION, "We are seeing strong demand for a hybrid, integrated approach to connectivity from businesses globally. Customers recognize the benefits of both technologies and want a secure, resilient, connectivity service that supports modern and next generation technologies. Eutelsat Group is putting a ubiquitous, high-throughput network in the hands of our customers, for them to design and offer the services that their end-clients have been waiting for."

The service of Eutelsat groupare a wholesale model, therefore belong to the business-to-business model and not direct to consumer, it was added.

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