Caleb Henry, WASHINGTON —Eutelsat's decision to scrap an investment in Viasat's ViaSat-3 system in favor of a fully-owned satellite means the two companies will now be competitors in the European broadband market — a stance analysts view as bad for both operators. Eutelsat on April 5 said it no longer intends to co-finance the second ViaSat-3 satellite, which Boeing is already building to bring massive amounts of capacity to Europe, the Middle East and Africa (EMEA). The Paris-based operator will instead tap Thales Alenia Space to build Konnect VHTS, a so-called Very High Throughput Satellite that will focus solely on Europe. "This is a net negative for all parties, in our view," Wells Fargo Senior Analyst Andrew Spinola wrote in an April 5 research note to clients. "We believe the two companies were stronger together and the European market will be less attractive with two competitors instead of one." More commercial space headlines |
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