ViaSat Inc. (NASDAQ: VSAT) and Eutelsat Communications (NYSE Euronext Paris: ETL) have agreed to create a joint venture combining Eutelsat´s current European broadband business with ViaSat´s industry-leading broadband technologies and consumer Internet Service Provider (ISP) business expertise.
Building on a decade-long relationship, ViaSat and Eutelsat are joining forces to create a partnership that will expand Eutelsat´s current wholesale broadband business and launch a new consumer retail service in Europe. The joint venture will initially leverage KA-SAT, Eutelsat´s high capacity broadband satellite.
Since KA-SAT entered service in 2011, Eutelsat has capitalised on its high capacity satellite platform in Europe and the Mediterranean Basin to reach 190,000 customers.
The joint venture will consist of two businesses coordinating efforts to expand the European broadband market:
Wholesale Services will be focused on providing wholesale broadband services in the European and Mediterranean regions, to the newly established retail services business and existing Eutelsat distributors.
Retail Services will be focused on building a direct-to-consumer ISP business in Europe. Enhanced service plans will be introduced in select European countries throughout 2016, setting a foundation for growth in the retail services business with the availability of future satellite capacity.
The business will be owned 51 percent by ViaSat and 49 percent by Eutelsat.
Completion of the transaction is subject to regulatory approvals and other customary closing conditions, and is currently expected to close during the second quarter of 2016.
Established in 1977, Eutelsat Communications operates communications satellites, providing capacity on 40 satellites to clients that include broadcasters and broadcasting associations, pay-TV operators, video, data and Internet service providers, enterprises and government agencies. Eutelsat´s satellites provide ubiquitous coverage of Europe, the Middle East, Africa, Asia-Pacific and the Americas, enabling video, data, broadband and government communications to be established irrespective of a user´s location.
Headquartered in Paris, with offices and teleports around the globe, Eutelsat represents a workforce of 1,000 men and women from 37 countries who are experts in their fields and work with clients to deliver the highest quality of service.
ViaSat is a global broadband services and technology company. Its innovations in designing highest-capacity satellites and secure ground infrastructure and terminal technologies coupled with its international network of managed Wi-Fi hotspots enable ViaSat to deliver a best available network that extends the reach and accessibility of broadband internet service, globally.
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