{"id":33839,"date":"2023-03-01T14:38:41","date_gmt":"2023-03-01T14:38:41","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=33839"},"modified":"2023-05-09T14:50:21","modified_gmt":"2023-05-09T13:50:21","slug":"cma-clear-merger-of-satellite-broadband-firms-viasat-and-inmarsat","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2023\/03\/cma-clear-merger-of-satellite-broadband-firms-viasat-and-inmarsat.html","title":{"rendered":"CMA Clear Merger of Satellite Broadband Firms Viasat and Inmarsat UPDATE"},"content":{"rendered":"

The UK’s Competition and Markets Authority (CMA) has today provisionally approved the merger of two major global satellite<\/a> communication and broadband operators – Viasat<\/a> (USA) and Inmarsat<\/a> (UK), which they previously warned could have resulted in airlines facing “higher prices for on-board wifi<\/a><\/em>” due to the loss of a key competitor.<\/p>\n

The two operators originally agreed to merge in a $7.3 billion (\u00a35.4bn) deal announced in November 2021. The move was partly seen as a response to growing competition from a new generation of mega constellations in Low Earth Orbit (LEO), such as those being launched by rivals such as Starlink<\/a> (SpaceX), OneWeb<\/a>, Telesat and Amazon<\/a> (Kuiper) etc. All of which were also moving into the aviation connectivity sector.<\/p>\n

However, despite the earlier concerns over a loss of competition, the CMA’s provisional ruling found that, while the companies compete closely in the aviation sector – specifically in the supply of satellite<\/a> connections for onboard WiFi<\/a> – the deal “does not substantially reduce competition for services provided on flights used by UK customers<\/em>“.<\/p>\n

The CMA\u2019s investigation has found that the satellite<\/a> sector is expanding rapidly – a trend the evidence suggests is likely to continue. This is due to increased demand for satellite connectivity, driven in large part by the ever-growing use of the internet by businesses and consumers, both at home and whilst travelling.<\/p>\n

In addition, the CMA noted that established competitors, such as Panasonic<\/strong> and Intelsat<\/strong>, are also investing and entering into new partnerships. For example, both firms have signed agreements with recent entrant OneWeb<\/a> to use its satellite fleet to enhance their offerings to airlines.<\/p>\n

Richard Feasey, CMA Inquiry Group Chair, said:<\/strong><\/p>\n

“This is an evolving and rapidly expanding sector, in which there have been significant developments even during the course of our 4-month investigation. We see this continuing as demand for satellite connectivity increases.<\/p>\n

While Viasat and Inmarsat compete closely, the evidence suggests that the merged company will face significant competition in the coming years \u2013 from both emerging players like Starlink<\/a> and from established firms like Intelsat and Panasonic.<\/p>\n

This competition has led us to provisionally conclude that airlines and their UK customers will not be adversely affected by the deal.”<\/p><\/blockquote>\n

Today\u2019s findings are provisional, and the CMA will now consult on its findings and listen to any further views before reaching a final decision. Assuming no change, the CMA will issue their final report by 30th March 2023.<\/p>\n

UPDATE 9th May 2023<\/strong><\/p>\n

As expected, the CMA has today given final approval to the deal. Richard Feasey (CMA) said: “All the evidence has shown that the sector will continue to grow as the demand for satellite connectivity increases. After carefully scrutinising the deal, we are now satisfied that, following the merger, these developments will ensure that both airlines and their UK customers will continue to benefit from strong competition<\/em>.”<\/p>\n","protected":false},"excerpt":{"rendered":"

The UK’s Competition and Markets Authority (CMA) has today provisionally approved the merger of two major global satellite communication and broadband operators – Viasat (USA) and Inmarsat (UK), which they previously warned could have resulted in airlines facing “higher prices for on-board wifi” due to the loss of a key competitor.<\/p>\n","protected":false},"author":1,"featured_media":26031,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[77,476],"class_list":["post-33839","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-satellite","tag-wifi"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nCMA Clear Merger of Satellite Broadband Firms Viasat and Inmarsat UPDATE - ISPreview UK<\/title>\n<meta name=\"description\" content=\"The UK's Competition and Markets Authority (CMA) has today provisionally approved the merger of two major global satellite communication and broadband\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2023\/03\/cma-clear-merger-of-satellite-broadband-firms-viasat-and-inmarsat.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CMA Clear Merger of Satellite Broadband Firms Viasat and Inmarsat UPDATE - 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