The End of GEO?

Why It Matters

By cutting the two satellites, SES reduces near‑term capital spending and signals a strategic pivot toward flexible LEO/MEO networks, a trend that could reshape satellite‑based media and connectivity markets.

Key Takeaways

• SES cancels IS‑41 and IS‑44 to cut capex after Intelsat merger
• GEO media revenue fell 13%‑27% across SES, Eutelsat, Telesat
• Operators pivot to LEO/MEO constellations like mPOWER, Lightspeed, OneWeb
• FCC C‑band auction outcome will shape future GEO satellite builds in US
• Existing GEO contracts still generate billions, ensuring short‑term demand

Pulse Analysis

The cancellation of IS‑41 and IS‑44 underscores SES’s effort to streamline a now‑combined 95‑satellite fleet after absorbing Intelsat. The operator highlighted that the two software‑defined GEO platforms no longer met its investment‑return expectations, allowing SES to preserve capex flexibility and focus on extending the life of existing assets. This rationalisation aligns with the company’s FY2026 capex outlook, which already factors in reduced spending on new GEO builds while maintaining five other media and government satellites in the pipeline.

Across the geostationary segment, revenue pressures are evident. SES’s media arm generated roughly $308 million in the first quarter, a solid YoY increase, yet the broader GEO market is contracting, as shown by Eutelsat’s $138 million video‑segment loss and Telesat’s $64 million Canadian revenue decline. The erosion stems from waning broadcast contracts and the migration of viewers to streaming services, prompting traditional DTH operators to reassess the profitability of mature GEO assets.

Looking ahead, the satellite industry is betting on low‑Earth‑orbit (LEO) and medium‑Earth‑orbit (MEO) constellations for growth. SES is advancing its mPOWER fleet, Telesat is deploying Lightspeed, and Eutelsat is integrating OneWeb satellites, all of which promise higher throughput and lower latency. In the United States, the FCC’s pending C‑band auction will determine whether new GEO satellites receive funding, but existing long‑term broadcast agreements ensure that GEO capacity remains a cash‑generating pillar in the short term. Companies that can blend legacy GEO services with next‑generation LEO/MEO solutions are likely to capture the evolving connectivity market.