Eutelsat Scales Back OneWeb Gen 2 Ambitions, Prioritizes Continuity For Existing Customers

Eutelsat, the French satellite operator and owner of OneWeb, has announced a shift in its upgrade plans for the OneWeb Gen 2 constellation. Initially envisioned as a significant advancement in satellite technology, the project will now focus on adding capacity primarily for existing customers with long-term contracts.

This decision, announced during Eutelsat's recent earnings call, represents a scaling back of the initial $4 billion budget by nearly one-third. Instead of deploying entirely new, highly upgraded satellites, Eutelsat will now prioritize launching satellites that ensure continuity of service for existing clients.

"We are taking a progressive approach to optimize our investments and prioritize continuity of service for our long-term customers," explained Eva Berneke, CEO of Eutelsat. This "phased approach," she added, allows for "greater predictability and flexibility" amidst a "changing market landscape."

Several factors seem to have influenced this decision. Firstly, ongoing economic uncertainties may have pushed Eutelsat to prioritize financial stability by focusing on existing revenue streams. Additionally, the success of the current OneWeb constellation, launched in 2020, might have eased the urgency for immediate large-scale upgrades.

This shift doesn't signify the complete abandonment of Gen 2 technology. Eutelsat intends to integrate some Gen 2 advancements into future satellites, aiming for a "synergistic and cost-effective approach." However, the overall ambition and timeline for the project have been scaled back.

This change has drawn mixed reactions. Some analysts view it as a pragmatic adaptation to economic realities, while others express concerns about potentially losing competitive edge in the rapidly evolving satellite broadband market. Only time will tell how this decision will impact Eutelsat and OneWeb's long-term position in the industry.

One thing remains certain: the satellite broadband landscape is evolving rapidly. Eutelsat's scaling back of its OneWeb Gen 2 ambitions highlights the need for flexibility and adaptability in this dynamic market. Whether this strategic shift proves successful depends on how the company navigates the changing environment and leverages existing technologies and customer relationships in the years to come.