Page 27 - SAMENA Trends - August 2020

REGIONAL & MEMBERS UPDATES SAMENA TRENDS

Eutelsat to Acquire European Satellite Broadband
Activities of Bigblu Broadband

Eutelsat Communications (Euronext Paris: from early 2021, bringing capacity in BBBEurope which will greatly enhance our
ETL) has reached an agreement with high-demand areas, improved end-user European broadband distribution network
Bigblu Broadband to acquire its European experience and unparalleled economics as we progressively bring into service
satellite broadband activities. Bigblu and flexibility. With its scalable platform next-generation capacity in the form of
Broadband is the largest distributor of for direct sales including digital marketing EUTELSAT KONNECT and KONNECT VHTS,
satellite broadband packages in Europe platforms, multi-lingual call centers, billing capable of bringing fiber-like high speed
with a proven track record, as evidenced and CRM systems, the integration of BBB internet connection to the many areas in
by its success as the main Gold member Europe will enable Eutelsat to overcome Europe that remain unserved or under-
of Euro Broadband Infrastructure’s the limitations of its existing indirect served by terrestrial infrastructure. This
Preferred Partnership Program since model by offering enhanced access to deal represents an important step in our
2019. Bigblu Broadband has developed the end-user, direct control over product broader Broadband strategy.”Eutelsat
a well-established platform for satellite definition and price for faster alignment will pay a consideration of c.£38m for
broadband, relying on a unique network with market needs, and increased control BBB Europe, which generated revenues
of installers and resellers. The activities of distribution levers including sales of c.£35m in 2019with a low double-digit
to be acquired by Eutelsat (BBB Europe) force incentives, communication and EBITDA margin. Given the level of inter-
currently count around 50,000 subscribers promotions. The addition of this retail company eliminations, the net contribution
across an expanding pan-European channel as a complement to wholesale to Eutelsat’s revenues and EBITDA will not
footprint which includes operations in the agreements with telecom operators, such be material. The acquisition will obviate
UK, Ireland, France, Germany, Italy, Spain, as the recent deal with Orange in France, the necessity for the group to invest in
Portugal, Poland, Hungary and Greece. will favor an accelerated ramp-up of the development of its own retail channel
[1] The agreement coincides with the upcoming capacity and the maximization in Europe. The closing of the transaction
entry into service of EUTELSAT KONNECT, of customer value over time. Commenting, is expected by October 2020, subject to
due to start gradually from fall 2020 Rodolphe Belmer of Eutelsat said: “We customary conditions precedent.
with operation at full capacity expected are delighted to integrate the activities of

Orange Partners with Eutelsat to Provide Broadband Via Satellite
Throughout France

Orange has purchased from Eutelsat enabling it to offer unlimited very high- secures the ramp-up of our EUTELSAT
Communications (NYSE Euronext speed Internet access to individuals KONNECT satellite, and perfectly illustrates
Paris: ETL) all available capacity on the throughout France. Commenting on the the complementarity between satellite and
EUTELSAT KONNECT satellite to cover agreement, Michel Jumeau, Executive Vice telecoms operators in ensuring ubiquitous
the entire French territory. It will enable President, Orange France, said: "The period coverage of the territory.” The agreement
Orange’s consumer customer base, even of lockdown we have just experienced has will apply until the entry into service of the
those living in the most isolated areas, demonstrated more than ever the need KONNECT VHTS very high-speed satellite,
to benefit from very high-speed fixed for connectivity throughout France. With including a transition period during
broadband via satellite from January this agreement with Eutelsat, Orange is which the installed base will be gradually
2021. The agreement comes against the proud to continue to fight against the transferred to the new satellite. Launched
backdrop the ‘Plan France Haut / Très Haut digital divide by offering very high-speed in January 2020, EUTELSAT KONNECT
Débit’, adopted by the French government fixed broadband throughout the country”. has total capacity of 75 Gbps and is able
with the aim of rolling-out high-speed Rodolphe Belmer, CEO of Eutelsat said: “We to assure full or partial coverage of up to
broadband of at least 30 mbps to the are pleased to reinforce and bring forward 15 countries in Europe and 40 in Africa,
entire French territory by 2022. The service our collaboration with Orange to leverage offering speeds of up to 100 Mbps to both
will be distributed by Orange's Nordnet our dedicated Connectivity capacity to companies and individuals in the digital
subsidiary, the leading French distributor deliver high speed internet to 100% of divide at competitive monthly rates.
of satellite Internet services since 2008, households in France. This agreement

27 AUGUST 2020