GEO Expansion Canceled
Leading satellite operators SES and Eutelsat have recently decided to halt their planned expansions in geostationary orbit (GEO), marking a significant
shift in their long-term strategies. SES has officially terminated contracts for two Intelsat-ordered satellites, IS-41 and IS-44, which were developed by Thales Alenia Space. These satellites, initially part of Intelsat's growth strategy following its bankruptcy reorganization in 2022, were designed to offer broadband services across Africa, Europe, the Middle East, and Asia. Their cancellation, alongside Eutelsat's earlier scrapping of its Flexsat Americas program also built by Thales Alenia Space, signals a broader industry trend away from substantial new GEO infrastructure. Flexsat Americas, intended to be a reconfigurable satellite on the Inspire platform, was slated for a 2028 launch before its program termination, which was expected to save over 100 million euros. This move by Eutelsat aligns with a heightened focus on managing geostationary spending. While SES did not explicitly name the canceled satellites in its earnings call, Thales Alenia Space confirmed the termination of the IS-41/IS-44 contract, emphasizing continued cooperation on other active projects like ASTRA 1Q and SES-26.
Fleet Rationalization Drives Decisions
The cancellations are primarily driven by a strategic initiative known as 'fleet rationalization' following major corporate consolidations. SES completed its acquisition of Intelsat in July 2025, creating a colossal multi-orbit operator with over 100 GEO and medium Earth orbit (MEO) satellites. This merger necessitated an optimization of their combined assets. An SES spokesperson stated that the company is streamlining its expanded and more resilient satellite fleet, eliminating redundancies. This 'normalization' process involves canceling two software-defined satellite orders while assuring customers of uninterrupted service through four other existing flexible satellite options and leveraging current fleet capacity. SES's chief financial officer, Lisa Pataki, indicated that these cancellations followed a thorough review, which also considered extending the operational life of existing satellites through in-orbit servicing, with five such GEO life-extension missions planned between 2026 and 2029.
Shifting Investment Priorities
Both SES and Eutelsat are reallocating their financial resources, prioritizing investments in non-geostationary orbit (NGSO) constellations and services. SES, which now operates alongside Intelsat's partnership with OneWeb's low Earth orbit (LEO) satellites, is also advancing its O3b MEO broadband fleet upgrades, with three more mPower satellites scheduled for deployment this year and a next-generation network planned by 2030. This focus on MEO and LEO capabilities aligns with market growth areas. Similarly, Eutelsat, having merged its GEO fleet with OneWeb's LEO network in 2023, reported a divergence in performance: while like-for-like GEO revenues declined by 4.3% in the first quarter of 2026, LEO connectivity sales surged by 65%. The company is directing capital expenditure towards LEO, even as it plans to lease capacity on other GEO satellites, such as Flexsat Asia from Thaicom, slated for a 2027 launch. Eutelsat is also contributing LEO spacecraft to Europe's IRIS² program, targeting services around 2030, further underscoring its commitment to NGSO.
Future Satellite Outlook
Despite the cancellations of IS-41 and IS-44, SES still maintains a robust GEO presence with other planned satellites. The company's manifest includes IS-42 and IS-43, two software-defined satellites originally ordered by Intelsat from Airbus in 2020, now scheduled for a 2027 launch. These, along with IS-45—a smaller GEO spacecraft ordered from Swissto12 in 2022 and initially planned for 2025 deployment—are still on track. These remaining GEO satellites are part of a plan for a 5G-compatible network that can be reconfigured in orbit. Financial results for SES in the first quarter of 2026 reflect this strategic shift, with revenue rising 80.5% to 847 million euros, driven by aviation and government connectivity services, despite headwinds in traditional fixed data and video distribution markets. This demonstrates a clear move towards growth segments within the space communications industry.
