Eutelsat and ViaSat Close European Broadband JV
Eutelsat Communications (NYSE Euronext Paris: ETL) and ViaSat Inc. (NASDAQ: VSAT) today closed their partnering arrangement combining Eutelsat's established European broadband business with ViaSat's broadband technology know-how and Internet Service Provider (ISP) business expertise.
Building on a decade-long relationship, Eutelsat and ViaSat are creating a partnership that will expand Eutelsat's current wholesale broadband business and launch a new consumer retail service in Europe. Headquartered in Lausanne, Switzerland, the joint venture will consist of two businesses coordinating efforts to expand the European broadband market:
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- Wholesale Services will focus on providing wholesale broadband and mobility services in the European and Mediterranean regions to the newly established retail services business and existing Eutelsat distributors. Eutelsat is contributing its current European broadband business including the KA-SAT satellite to the newly formed entity, owned 51% by Eutelsat. ViaSat has acquired a 49% interest in the business for a consideration of €132.5 million.
- Retail Services will focus on offering retail broadband services in the European and Mediterranean regions. Enhanced service plans are expected to be introduced in select European countries from 2017 onwards, setting a foundation for growth in the retail services business with the availability of future satellite capacity. This business is owned 51% by ViaSat and 49% by Eutelsat.
Source : ViaSat, Inc. - view original press release