Shopping Cart  |  Intelligence Center


HOME PRODUCTS & SERVICES MEDIA CENTER CONSULTING SERVICES DEMOS LOG IN CONTACT US

AEROSPACE & DEFENSE ELECTRONICS
AIRLINES, COMMERCIAL AVIATION & MAINTENANCE
AVIATION ENGINES, PROPULSION & AUXILIARY POWER UNITS
INDUSTRIAL & MARINE GAS TURBINES
INTERNATIONAL MILITARY MARKETS & BUDGETS - ASIA, AUSTRALIA & PAC RIM/EURASIA
INTERNATIONAL MILITARY MARKETS & BUDGETS - EUROPE
INTERNATIONAL MILITARY MARKETS & BUDGETS - NORTH AMERICA
MILITARY AIRCRAFT
MILITARY VEHICLES, ORDNANCE, MUNITIONS, AMMUNITION & SMALL ARMS
MISSILES & MISSILE SYSTEMS
NAVAL SHIPS AND OPERATING SYSTEMS
NON-US AEROSPACE/DEFENSE COMPANIES & CONTRACTS
REGIONAL, BUSINESS & GENERAL AVIATION
ROTORCRAFT
SPACECRAFT, LAUNCH VEHICLES & SATELLITES
US AEROSPACE/DEFENSE COMPANIES & CONTRACTS
Drones and Unmanned Systems - Air, Sea, Land, Micro & Robot Systems
UTILITIES, ROTATING MACHINERY & POWER GENERATION

 
INTELSAT LOOKS TO DRASTICALLY ALTER ITS OUTLOOK
Thursday, May 18, 2017
Click image for a larger picture

Intelsat could drastically change outlook with OneWeb

Source: OneWeb


Intelsat could drastically change outlook with OneWeb

Source: OneWeb


Close
NEWTOWN, Conn. - Once an established industry player, investment in new technology and a possible merger with startup OneWeb may drastically alter the outlook for Intelsat. While Intelsat maintains one of the largest commercial geosynchronous satellite fleets in the world, the company has dealt with hardships over the past few years. Revenue has been slowly declining as the market for satellite capacity becomes saturated.

Of more importance, is Intelsat's large amount of debt. Long term debt was $14.2 billion at the end of 2016, and in March 2016, Moody's downgraded Intelsat's credit rating. These issues have led Intelsat to investigate ways to reduce its debt burden. At one point, Intelsat investigated looked into selling some of its assets. However, selling satellites would reduce the company's competitive advantage, which lies in its large global network. Because investment in new satellites remains high, the company has not been able to pay down its large debt burden.

However, Intelsat is attempting to break out of this trend. The first way the company is doing this is by investing in new technologies. In September 2012, Intelsat ordered four high throughput satellites from Boeing. The new satellites offer much more capacity than older spacecraft. The new technologies have allowed Intelsat to serve more customers with each satellite, as a way to counteract declining prices. Intelsat will also be able to order fewer satellites to replace its in-orbit spacecraft as they age.

Intelsat has also awarded a contract to Orbital ATK to use its MEV-1 satellite life extension vehicle. The vehicle will be able to dock with satellites that have run out of propellant but are otherwise usable. Extending the life of even a few satellites in Intelsat's 50-satellite fleet could significantly reduce capital expenditures, which have not fallen below $600 million in any year since Intelsat went public in 2012.

In February 2017, the most important potential change occurred when SoftBank orchestrated a merger between Intelsat and startup OneWeb. If the deal is approved, Intelsat will no longer rely solely on satellites in geosynchronous orbit. It will add OneWeb's massive fleet of low Earth orbiting (LEO) satellites designed to provide high speed broadband services around the world.

With all of these changes, Intelsat will take delivery of fewer geosynchronous satellites over the next decade than it has in the past.

Note that Forecast International currently covers OneWeb satellites in a separate report in this service. If the merger is approved, forecasts for OneWeb and Intelsat will be combined.

Source:  Forecast International
Associated URL: www.forecastinternational.com
Source Date: May 18, 2017
Author: B. Ostrove, Analyst 
Posted: 05/18/2017

 

NOTICE TO USERS

Warranty: Forecast International makes no guarantees as to the veracity or accuracy of the information provided. It warrants only that the information, which has been obtained from multiple sources, has been researched and screened to the best of the ability of our staff within the limited time constraints. Forecast International encourages all clients to use multiple sources of information and to conduct their own research on source data prior to making important decisions. All URLs listed were active as of the time the information was recorded. Some hyperlinks may have become inactive since the time of publication.

Technical Support: Phone (203)426-0800 e-mail support@forecast1.com

Subscription Information: Phone (203)426-0800 or (800)451-4975; FAX (203)426-0223 (USA) or e-mail sales@forecast1.com

Aerospace/Defense News Highlights is published by Forecast International, 22 Commerce Road, Newtown CT 06470 USA. Articles that list Forecast International as the source are Copyrighted © 2017. Reproduction in any form, or transmission by electronic or other means, is prohibited without prior approval from the publisher.

Forecast International invites all interested companies to submit their announcements and press releases for review and inclusion in our Intelligence Letters.

Contact: Ray Peterson, Director of Research
E-Mail: Ray.Peterson@forecast1.com
Phone: 800-451-4975
FAX: 203-270-8919



HOME PRODUCTS & SERVICES MEDIA CENTER CONTACT US PRIVACY STATEMENT TERMS AND CONDITIONS

Forecast International © 2017 22 Commerce Rd Newtown, CT 06470 USA Phone: 203.426.0800 Toll-Free: 800.451.4975 (USA & Canada) Fax: 203.426.0223 info@forecast1.com