Viasat Completes Purchase of Euro Broadband Infrastructure
Viasat has completed its purchase of Eutelsat’s share of Euro Broadband Infrastructure (EBI), the wholesale broadband services business, the company announced April 30. This purchase gives Viasat complete ownership of the KA-SAT satellite and related ground infrastructure. KA-SAT covers Europe and the Mediterranean region.
Viasat said this move diversifies its business portfolio in Europe, and sets the stage for its Europe, Middle East and Africa-focused ViaSat-3 satellite. The purchase was first announced in November 2020, with a purchase price of $166 million (140 million euro).
CEO Rick Baldridge said with the acquisition complete, Viasat will introduce new service offerings for its European broadband business.
“This deal provides a foundation for growth and an investment in the European region in addition to Africa and the Middle East,” Baldridge commented. We can now set in motion our multi-tiered partner and distribution strategy, while trialing new ‘ViaSat-3 like’ home internet plans and new mobility offerings that best consider the needs and requirements of the local market dynamics as well as consumer and enterprise appetites for broadband.”
Baldridge spoke with Via Satellite after the deal was announced in November, explaining the rationale. He said Eutelsat’s priorities with the joint venture changed, and purchasing Eutelsat’s share allowed Viasat to prepare for go-to-market in EMEA with the Viasat-3. He also said that integrating KA-SAT into its fleet is similar to the approach Visat took when it acquired WildBlue Communications and its satellites WildBlue-1 and Anik F2.
“KA-SAT will be integrated into our network and will be used for aero or residential initially and possibly to experiment in entering new European markets like enterprise, maritime, and other segments,” Baldridge said in 2020. “We are able to blend that mix of capacity, and if you understand Moore’s Law, that cost skews to much closer to the average cost of your latest invention. By integrating the KA-SAT satellite into our network, we think we can get economic yield through it to the end of its life.