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Business Standard
10-07-2025
- Business
- Business Standard
UK to invest 163 million euros in Eutelsat, Bharti Space ups stake
The United Kingdom will invest 163 million Euros in French satellite major Eutelsat through a reserved capital increase (RCI), bringing the total amount planned to be raised by Eutelsat to 1.5 billion Euros, the company announced on Thursday. Bharti Space Ltd has also raised its investment commitment to 150 million Euros. The British government will invest 90.1 million Euros through an RCI and a rights issue (RI) of 73.2 million Euros, through the office of the Secretary of State for Science, Innovation, and Technology of the United Kingdom. 'As our adversaries increasingly use space technologies to harm us, resilient satellite connectivity has become essential to our continent's national security. This investment reflects our commitment to support the development of these critical technologies and maintain an important stake in the global satellite communications sector,' said Peter Kyle, Secretary of State for Science, Innovation, and Technology. The entry of another key reference shareholder comes weeks after the French government had announced a similar investment of 551 million Euros in the RCI and subscribed to a rights issue of 199.3 million Euros. 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 now have a total investment of 750 million Euros. In 2023, Bharti Enterprises-backed satellite communications company OneWeb merged with Eutelsat to become the second-largest satellite operator globally, with 669 satellites in orbit. The total RCI would amount to 828 million Euros, and a subsequent RI would amount to 672 million Euros. Eutelsat's capital raise is part of a plan to refinance debt and expand its upcoming constellation of satellites. Apart from moving forward with a dedicated debt refinancing plan, this capital increase will reinforce the company's financial flexibility by accelerating its deleveraging and supporting investment in its existing Low Earth Orbit (LEO) capabilities and the future IRIS² constellation. 'Today, governments require secure and reliable sovereign connectivity solutions, and Eutelsat is uniquely positioned to meet this need. I echo President Macron's words at the Paris Air Show last month, where he urged France's major strategic partners in the Gulf, India, Canada, and Brazil to join the coalition backing Eutelsat Group as the global Space Champion,' said Sunil Bharti Mittal, Co-Chairman of Eutelsat Group. Both the RCI and the RI are expected to be completed by the end of 2025. Following the two transactions, and subject to participation from investors, the French State would hold a stake of 29.65 per cent of the capital and voting rights, while Bharti Space Limited and the UK government would hold 17.88 per cent and 10.89 per cent, respectively. Shipping giant CMA CGM, and Le Fonds Stratégique de Participations (FSP), an investment fund owned by seven France-based insurance firms, would hold 7.46 per cent and 4.99 per cent of the share capital and voting rights. The rules of the agreement state that investors will not be in a position to launch a public takeover.
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Business Standard
20-06-2025
- 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
20-06-2025
- 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
Time of India
10-05-2025
- Business
- Time of India
Satellite communication companies need to pay 4% fee on revenue: Trai
Representative image NEW DELHI: Telecom regulator Trai on Friday recommended a charge of 4% of adjusted gross revenue (AGR) for satellite communications operators, such as Elon Musk's Starlink, Bharti Enterprises-backed OneWeb and Jio-SES, and said the companies should be assigned spectrum for a period of five years, that can be extended by another two years. The regulator also proposed charges on satcom companies when acquiring customers in urban areas, while recommending subsidy for installation in dark zones, within rural and remote areas to encourage faster network enhancement. The long-awaited recommendations clear one more hurdle for Starlink and other satcom providers after revised guidelines issued by the department of telecom (DoT) recently, and issuance of Letter of Intent to Musk's company earlier this week. Operation Sindoor India's air defence systems shoot down Pak drones in J&K, Punjab & Rajasthan India-Pakistan tensions: Delhi airport issues travel advisory Operation Sindoor: Multiple explosions heard at several Pakistan air bases The AGR comes after govt decided to provide spectrum for satcom providers on an administrative basis, against auctions that are mandated for terrestrial service providers, such as Reliance Jio, Bharti Airtel & Vodafone Idea. Trai did not fix any specific price for the airwaves as was being demanded by Jio and Airtel. The domestic terrestrial providers were pushing the govt for "comparable" spectrum pricing for satcom providers to ensure "fair competition" in the telecom sector and to drive in a "level-playing field". Trai chairman Anil Kumar Lahoti said the regulator did not find any case of satellite services eating into the broader business model of the terrestrial providers. "After detailed examination, we have found that satellite services will be complementary and not competing," Lahoti said on the recommendations, which will now be examined by DoT. If found satisfactory, they will be taken to the cabinet and when approved, allow companies to get satcom licenses to start services. To ensure that companies don't squat on the spectrum and delay launch, Trai also fixed a 'minimum charge' of Rs 3,500 per MHz for the companies. Lahoti said an additional annual charge of Rs 500 per subscriber has been fixed if satcom companies acquire customers in urban areas, where network coverage is already robust. This is to ensure that they concentrate more on providing rural connectivity. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
