TAMPA, Fla. — SES expects to complete its acquisition of rival satellite operator Intelsat July 17 after clearing all regulatory hurdles in the way of the multi-billion-dollar deal.
The Luxembourg-based company announced the closing date in a brief news release July 14, days after securing U.S. Federal Communications Commission approval despite opposition from competitor Eutelsat and broadcast organizations.
The French operator warned that the combined company would dominate satellite-based video distribution in the U.S. via C-band, a key frequency band for broadcasters and cable operators. Together, it said SES and Intelsat would control roughly 96% of video channels distributed over C-band in the country.
While the satellite TV market is losing ground to online streaming, video broadcasting remains an important revenue source for legacy operators, even as they double down on broadband services to drive future growth.
Eutelsat urged the FCC to investigate the competitive impacts of the merger on C-band services and adopt any necessary safeguards.
However, the FCC concluded that competition from Eutelsat and other satellite operators, alongside increasingly available terrestrial fiber, would limit SES’ ability to raise prices or degrade service after the deal.
C-band winners unite
Beyond market share, SES and Intelsat have also been among the biggest financial beneficiaries of recent U.S. C-band spectrum policy.
Of the more than $80 billion the FCC raised in its 2020 C-band auction, around $13.4 billion went to incumbent satellite operators (primarily SES and Intelsat) to accelerate their relocation to upper parts of the band and cover associated costs, including new satellites.
The FCC’s authority to conduct most spectrum auctions lapsed in 2023.
However, the “One Big Beautiful Bill Act” signed into law July 4 largely restores that power. The bill mandates the auction of at least 300 megahertz of spectrum within two years, including at least 100 MHz in the upper C-band.
The FCC has already begun a proceeding to explore potential new uses for this upper portion of satellite spectrum in the United States.
SES recently estimated the cost of acquiring Intelsat to be 3.5 billion euros ($4 billion), comprising 3 billion euros in cash and 531 million euros in contingent payments tied to the potential monetization of Intelsat’s C-band spectrum.
Their combination also comes as legacy operators seek scale to compete in a rapidly evolving broadband market reshaped by the growing dominance of SpaceX’s Starlink constellation.
In 2023, driven by similar market pressures, Eutelsat acquired OneWeb and Viasat completed its purchase of Inmarsat.