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India Gazette
4 hours ago
- Business
- India Gazette
Capital infusion of Euro 1.35 billion in Eutelsat for satcom operations
New Delhi [India], June 20 (ANI): Eutelsat announces a Contemplated capital increase of Euro 1.35 billion, anchored by key reference shareholders, to secure the execution of long-term strategic vision. Sunil Bharti Mittal, Founder & Chairman, Bharti Enterprises & Co-Chairman Eutelsat Group, 'I am delighted that under the leadership of President Macron, the French state has decided to back Eutelsat as the European Space Champion and increased its shareholding by injecting a sizeable investment into the company.' He added, 'We are also thrilled to welcome the French armed forces ministry, DGA, partnership with Eutelsat in a long term Euro 1B contract to reserve capacity on Eutelsat's low-Earth orbit OneWeb constellation for its mission critical needs.' Eutelsat is one of only two global operators with active commercial LEO (Low Earth Orbit) fleets and with a clear differentiation, being the only one exclusively focused on the B2B and B2G markets. The LEO revolution, both technological and industrial, has brought satellite communications into a new era, delivering affordable and ubiquitous connectivity at scale, with unprecedented customer experience for satcoms. This unlocks a huge market potential, from bridging the digital divide across all customer segments on a global basis, to unlocking numerous new use cases, such as mobility over land, sea and air. Barriers to entry into LEO - in particular access to, and the requirement to share spectrum secured by Eutelsat - mean only a limited number of players will participate in the massive growth ahead, creating compelling conditions for value creation. Eutelsat is uniquely positioned to capture this market opportunity, thanks to its legacy, fully-invested high cash-flow generating GEO business, its operational scale, commercial momentum, and targeted focus on professional and institutional use cases. Since its acquisition of OneWeb, it has expanded its coverage - now expected to be fully achieved in calendar year-end 2026, secured regulatory approvals in many addressable markets, developed its distribution network and improved its offer with consistent service levels, as evidenced by a backlog of Euro 3.7bn revenues, mostly coming from Connectivity. As the only European operator with a fully operational LEO network, Eutelsat is positioned to play a strategic role in supporting critical sectors such as military communications, cyber-resilience, and secure government connectivity, fully aligned with European Union and NATO objectives for strategic autonomy. The landmark 10-year framework agreement announced earlier this week with France's Ministry of the Armed Forces, aimed at strengthening the integration of civilian and military assets (Nexus program), for a maximum amount of EUR1 billion, illustrates the strategic role of the LEO constellation in France's model for sovereign defense and space communications. Moreover, with its role as the largest private investor in the European Union's IRIS2 (Infrastructure for Resilience, Interconnectivity and Security by Satellite) program, the public-private partnership aiming to build a multi-orbit constellation delivering secure communication services to the EU and its Member States, Eutelsat confirms its status as a central player in assuring Europe's space and connectivity sovereignty. Prior to the approval of the Reserved Capital Increase by Eutelsat's shareholders, the APE will acquire the shares of the Company currently held by Bpifrance Participations, at a price per share equal to the subscription price of the Reserved Capital Increase. Consequently, the Board member representing Bpifrance Participations would be replaced by a representative of the French State. On the back of the forthcoming capital increase, Eutelsat would reduce its leverage to c. 2.5x4 by year-end FY'2025-26, and would be well placed to tap debt capital markets, raise export credit financing and extend its bank debt maturities in order to fully cover the financing needs of its medium-term plan. (ANI)
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Business Standard
7 hours ago
- Business
- Business Standard
Bharti Space to invest $36 million in French satellite major Eutelsat
As part of a plan to refinance debt and expand its upcoming constellation of satellites, French satellite major Eutelsat Communications will raise €1.35 billion, or $1.55 billion, through a reserved capital increase and a rights issue, the company announced on Friday. Bharti Enterprises' space venture, Bharti Space Ltd, will invest €31.4 million, or $36 million, in the capital raise. In 2023, Bharti Enterprises-backed satellite communications company OneWeb had merged with Eutelsat to become the second-largest satellite operator globally, with 669 satellites in orbit. The reserved capital increase, valued at €716 million, will see new shares issued at €4 each — a 32 per cent premium over the recent 30-day volume-weighted average price, said Eutelsat, which is a key rival of Elon Musk's Starlink. The Agence des Participations de l'État (APE), or State Participations Agency, responsible for managing the French state's shareholdings in companies of strategic importance, will subscribe €526.4 million of this. Shipping giant CMA CGM and Le Fonds Stratégique de Participations (FSP), an investment fund owned by seven France-based insurance firms, will also invest €100.4 million and €57.8 million respectively. A separate rights issue of €634 million will also be subscribed by these investors. Apart from supporting a dedicated debt refinancing plan, this capital increase will reinforce the company's financial flexibility by accelerating deleveraging and supporting investment in its existing Low Earth Orbit (LEO) capabilities and the future IRIS² constellation. "By strengthening the capital of Eutelsat, the only European player in low-orbit constellations, France is ensuring its strategic independence and preparing that of Europe," French President Emmanuel Macron tweeted on Friday. Positioned as the only European operator with a fully operational Geostationary Orbit (GEO)–Low Earth Orbit (LEO) network, Eutelsat plays a pivotal role in military and secure communications. A 10-year, €1 billion contract with France's Ministry of Armed Forces further cements its role in the nation's defence and space communication strategy. The global satellite connectivity market is expected to grow by 12 per cent per annum between 2025 and 2029. The global LEO B2B connectivity market is currently valued at over $2.1 billion and is expected to grow at a 28 per cent compounded annual growth rate through 2029, multiplying its current size fivefold over the next eight years — offering significant short to long-term growth potential. 'I am delighted that under the leadership of President Macron, the French state has decided to back Eutelsat as the European space champion and increased its shareholding by injecting a sizable investment into the company. We are also thrilled to welcome the French armed forces ministry, DGA's partnership with Eutelsat in a long-term €1 billion contract to reserve capacity on Eutelsat's Low Earth Orbit OneWeb constellation for its mission-critical needs,' said Sunil Bharti Mittal, founder and chairman, Bharti Enterprises, and co-chairman, Eutelsat Group. Eutelsat forecasts revenue growth to reach between €1.5–1.7 billion by FY 2028–29, fuelled by strong LEO momentum. The company also expects a minimum EBITDA margin of 60 per cent by that period, supported by operational leverage. For FY 2025–26, revenues are expected to align with the previous year, while LEO revenues are projected to grow by 50 per cent year-on-year. Gross capital expenditure for FY 2025–26 is estimated at €1.0–1.1 billion, primarily directed towards LEO expansion, including procurement of new satellites and preparation for the IRIS² constellation deployment from FY 2027–28 onward. The Department of Telecommunications (DoT) has already granted OneWeb, Reliance Jio's satellite arm Jio Space Limited, and Starlink the necessary licences to offer satellite-based broadband services in India.
Mint
8 hours ago
- Business
- Mint
Jio, Bharti-backed OneWeb get breather as India extends deadline for provisional spectrum use
Jatin Grover Satellite internet providers, including OneWeb and Jio, received a six-month extension to meet compliances for trial spectrum usage. Why this comes as a relief for the operators? Bharti Enterprises-backed OneWeb, Jio get extra time due to trial spectrum window extension. (Image: Pexel) Gift this article The government has given satellite internet companies, Bharti Enterprises-backed Eutelsat OneWeb and Jio Satellite, another six months to use provisional spectrum, two officials aware of the matter said. The extension gives them time until November to complete all security-related compliance requirements. The government has given satellite internet companies, Bharti Enterprises-backed Eutelsat OneWeb and Jio Satellite, another six months to use provisional spectrum, two officials aware of the matter said. The extension gives them time until November to complete all security-related compliance requirements. This comes as a relief for the operators that were yet to comply with the government's recently introduced security guidelines, a prerequisite for launching commercial services in India, one of the two officials cited above said. The extension will give companies time to meet mandatory security compliance requirements while the government finalises satellite spectrum pricing and other conditions for commercial rollout, the official said, adding that national security safeguards are essential before services can go live. The official said the service launch could be delayed if the companies are unable to meet the required standards. The provisional spectrum was opened to the companies in October by the department of telecommunications (DoT) through a notification at a one-time fee of ₹ 1.1 lakh for a six-month period. The spectrum was issued for testing services as well as to attain security compliances, and was not meant for commercial services. 'The companies have not been able to fully meet all the security assurance requirements. Therefore, they have been given the extension," the second official said, adding that OneWeb was the first to seek spectrum usage extension as it has met almost 80% of the security requirements of DoT and is in the process of meeting the remaining requirements. On 16 May, Mint reported that Eutelsat OneWeb has sought more time from the Centre to meet all of India's stringent security norms and the government might extend the timeline for use of the provisional spectrum. Jio too had asked the government later for extension of the trial spectrum, the second official added. Queries emailed to OneWeb India, Jio, and DoT early Friday did not elicit any response till press time. "There is no spectrum allocation policy, which has come out yet. So, DoT had to extend the timeline for provisional spectrum for the companies as new use cases of the technology are also coming up," an industry executive said OneWeb was the first satellite communications (satcom) company to receive the global mobile personal communication by satellite (GMPCS) licence from the DoT in April 2022, allowing it to offer satellite-based services in India. Jio Platforms, an arm of Reliance Industries Ltd (RIL), which plans to roll out its consumer satellite broadband service under the 'JioSpaceFiber' brand, has a joint venture with satellite operator SES. Unlike OneWeb, which uses a constellation of 630 low-earth orbit (LEO) satellites, Jio's service is based on six medium-earth orbit (MEO) satellites. The differing technologies mean the complexity of security compliance also varies for each operator. Security compliances 'India has stringent security regulations, and since this is the first time operators are going through the entire process - including trials, audits and demonstrations, it will take some time to achieve full compliance. Early movers like OneWeb and Jio-SES seem to have a headstart here," said Shivaji Chatterjee, chief executive and managing director of Hughes Communications India, which distributes GEO and LEO satellite services in the country. GEO is geostationary earth orbit satellites, while LEO is low earth orbit. "It's not that the operators' systems are not ready to demonstrate security compliance. Some of the requirements are complex to demonstrate, and being a first time, varying interpretations by audit agencies and operators have led to longer approval times," he added. On 5 May, DoT issued guidelines to tighten security as satellite communication companies such as Starlink, Amazon's Kuiper, Globalstar, OneWeb and Jio move closer to starting satellite internet services in the country. Starlink received its licence from DoT on 6 June to begin satellite broadband services in India. After the spectrum allocation, the company will need to test and demonstrate compliance with the security conditions, like its peers. Companies seeking a global mobile personal communication by satellite (GMPCS) licence in India would require security clearance for specific gateway or hub locations in the country, per the department of telecommunications' guidelines. Among the 29 requirements, the government has also mandated data localisation, lawful interception, and local manufacturing requirements for satcom companies. A key challenge with compliance is the mandate to set up network control and monitoring centres within India, giving India control over satellite telemetry–on-ground management and monitoring of satellites based on transmitted data, one of the officials said. Indian authorities require that telemetry and control of satellites serving Indian users be done within the country to ensure national security and data sovereignty. Also Read: Eye in the sky: India to set up satellites to spy on satellites Spectrum allocation draft Currently, DoT is also in the process of finalising the spectrum allocation via non-auction route and other modalities to pave the way for operators to start satellite internet services in the country. On 9 May, the Telecom Regulatory Authority of India (Trai) had recommended administrative allocation of spectrum, as opposed to auctions, for satellite internet services. It said satcom companies will have to pay annual spectrum charges of either 4% of their adjusted gross revenue (AGR) or ₹ 3,500 per MHz, whichever is higher. Additionally, Trai has recommended an additional annual charge of ₹ 500 per subscriber for such service providers in urban areas. Satcom operators will also have to pay the government an annual licence fee of 8% of AGR, per the current authorization terms of the DoT. Telecom operators, represented by the Cellular Operators Association of India (COAI), alleged that the pricing for satellite spectrum recommended by the telecom regulator is unjustifiably low, non-transparent, and does not lead to a level playing field. It said the recommendation of spectrum usage charges—set at 4% of adjusted gross revenue—without any entry fee or upfront payment is inconsistent with the approach followed so far in case of administrative spectrum allocations, and is without any rationale, empirical analysis, international benchmarking or economic justification. However, the Broadband India Forum (BIF), which represents Big Tech and satellite companies, wrote to the Centre on 18 June that there was no question of a level playing field, given the vast differences in technologies, services, infrastructure costs, and spectrum assignment methods. It urged the Centre not to review Trai's recommendations. Topics You May Be Interested In
Economic Times
9 hours ago
- Business
- Economic Times
Bharti Enterprises to invest Rs 313 cr in Eutelsat under fresh capital raise plan
Reuters The logo of the satellite operator Eutelsat New Delhi: Bharti Enterprise's space venture will invest €31.4 million (about Rs 313 crore) as part of French satellite group Eutelsat's fresh €1.35 billion (around Rs 11,250 crore) capital raising plan, aimed at paring debt and investing in satellite constellations. The French government will invest €526.4 million in Eutelsat and become the largest shareholder with a 29.99% stake, displacing Bharti Space, which will now own 18.7% stake in Eutelsat, the world's second largest satcom group and a chief rival to Elon Musk-owned Starlink. Other investors include shipping major CMA CGM with €100.4 million, with sovereign investor FSP putting in €57.8 million. 'I am delighted that under the leadership of President Macron, the French state has decided to back Eutelsat as the European Space Champion and increased its shareholding by injecting a sizeable investment into the company,' Sunil Bharti Mittal, Founder & Chairman, Bharti Enterprises & Co-Chairman Eutelsat Group. Post merger between Eutelsat and Bharti Enterprises and UK government backed-OneWeb in 2023, the Indian group became the largest shareholder in Eutelsat with a 21.2% share. 'We are also thrilled to welcome the French armed forces ministry, DGA, partnership with Eutelsat in a long term €1B contract to reserve capacity on Eutelsat's low-Earth orbit OneWeb constellation for its mission critical needs,' Mittal this week, Eutelsat signed a 10-year agreement with France's Ministry of the Armed Forces under the Nexus program. The deal, worth up to €1 billion ( ?9,999 crore), aims to integrate military and civilian satellite resources and strengthen European capabilities in secure space capital raise comes at a time of heightened activity in the satellite internet space, especially in India. Eutelsat OneWeb, a unit of the Eutelsat group, is poised to start commercial broadband-from-space service in India, having received all necessary statutory clearances, except for more than 600 satellites since merging with British firm OneWeb in 2023, Eutelsat is the world's second-largest operator of low Earth orbit (LEO) satellites. But it remains far smaller than Starlink, which has 6,000 satellites.
Time of India
10 hours ago
- Business
- Time of India
Bharti Enterprises to invest Rs 313 cr in Eutelsat under fresh capital raise plan
New Delhi: Bharti Enterprise's space venture will invest €31.4 million (about Rs 313 crore) as part of French satellite group Eutelsat 's fresh €1.35 billion (around Rs 11,250 crore) capital raising plan, aimed at paring debt and investing in satellite constellations. The French government will invest €526.4 million in Eutelsat and become the largest shareholder with a 29.99% stake, displacing Bharti Space , which will now own 18.7% stake in Eutelsat, the world's second largest satcom group and a chief rival to Elon Musk-owned Starlink. Other investors include shipping major CMA CGM with €100.4 million, with sovereign investor FSP putting in €57.8 million. 'I am delighted that under the leadership of President Macron, the French state has decided to back Eutelsat as the European Space Champion and increased its shareholding by injecting a sizeable investment into the company,' Sunil Bharti Mittal, Founder & Chairman, Bharti Enterprises & Co-Chairman Eutelsat Group. Post merger between Eutelsat and Bharti Enterprises and UK government backed-OneWeb in 2023, the Indian group became the largest shareholder in Eutelsat with a 21.2% share. 'We are also thrilled to welcome the French armed forces ministry, DGA, partnership with Eutelsat in a long term €1B contract to reserve capacity on Eutelsat's low-Earth orbit OneWeb constellation for its mission critical needs,' Mittal added. Earlier this week, Eutelsat signed a 10-year agreement with France's Ministry of the Armed Forces under the Nexus program. The deal, worth up to €1 billion ( ?9,999 crore), aims to integrate military and civilian satellite resources and strengthen European capabilities in secure space communications. The capital raise comes at a time of heightened activity in the satellite internet space, especially in India. Eutelsat OneWeb, a unit of the Eutelsat group, is poised to start commercial broadband-from-space service in India, having received all necessary statutory clearances, except for spectrum. Operating more than 600 satellites since merging with British firm OneWeb in 2023, Eutelsat is the world's second-largest operator of low Earth orbit (LEO) satellites. But it remains far smaller than Starlink, which has 6,000 satellites.
