SES vs Intelsat

A comparison of the two largest traditional satellite communications operators. SES announced its acquisition of Intelsat in April 2024 and completed the deal in July 2025, creating the world's largest geostationary satellite fleet. This comparison captures each company's independent profile before and through the combination.

The C-Band Windfall

Both SES and Intelsat received massive payments from the FCC's C-band spectrum clearing initiative, which required satellite operators to vacate mid-band spectrum (3.7-4.0 GHz) so wireless carriers could use it for 5G services. Intelsat received approximately $3.7 billion and SES received approximately $3.0 billion in accelerated relocation payments. For Intelsat, this windfall was transformative: the company had filed for Chapter 11 bankruptcy in May 2020 (driven by ~$15B in debt accumulated through multiple leveraged acquisitions including PanAmSat), and the C-band payments helped enable its emergence from bankruptcy in February 2022 with a restructured balance sheet.

SES used its C-band proceeds to invest in next-generation infrastructure, including the O3b mPOWER constellation of 13 medium-Earth-orbit (MEO) high-throughput satellites (10 launched as of early 2026, 3 remaining). O3b mPOWER, which began service in 2023-2024, provides low-latency, high-throughput connectivity that GEO satellites cannot match, positioning SES uniquely among traditional operators with a multi-orbit architecture. Intelsat has no equivalent MEO capability, which was one of the strategic rationales for the merger: the combined company now offers connectivity across both GEO and MEO orbits.

The SES-Intelsat Merger

SES announced in April 2024 its intention to acquire Intelsat for $3.1 billion in cash consideration (enterprise value ~$5B). The deal closed on July 17, 2025 after receiving regulatory approval from the DOJ, FCC, European Commission, and other authorities, creating a satellite operator with ~90 GEO satellites, ~30 MEO satellites (including O3b mPOWER), roughly $4B+ in combined annual revenue, and the largest geostationary orbital slot portfolio in the industry. The combined entity has unmatched geographic coverage and spectrum holdings.

Both companies serve government and military customers worldwide, and the combination of two of the four major GEO operators (alongside Eutelsat/OneWeb and Viasat/Inmarsat) drew regulatory scrutiny. The U.S. government business was particularly sensitive: SES GS and Intelsat General both hold significant military communications contracts. With the deal now completed, the merged company is expected to deliver approximately €370M in annual synergies (70% within 3 years). The combined entity now faces the strategic challenge of LEO broadband competition from Starlink and its successors while leveraging its multi-orbit GEO+MEO architecture.

The LEO Broadband Challenge

Both SES and Intelsat face the strategic reality that LEO broadband constellations (principally Starlink, with Amazon Kuiper and others following) are capturing an increasing share of the connectivity market that traditionally belonged to GEO operators. GEO satellites offer high throughput but inherent ~600ms round-trip latency, while LEO constellations offer broadband with 20-40ms latency. SES's O3b mPOWER at MEO (~8,000 km altitude, ~150ms latency) provides a middle ground, but the trend is clear: high-value, latency-sensitive applications are migrating to lower orbits. The merger can be seen partly as a consolidation strategy: combining scale and spectrum to compete more effectively in a market where GEO revenue growth has stalled and LEO is ascendant.