Joint venture in the skies
Europe's top two commercial satellite companies, until now furious rivals, have decided to start a joint venture. #1 SES Global (Luxemburg) and #2 Eutelsat (France) will join forces to offer video music to portable devices like cellphones, PDAs, and car radios.
The two erstwhile rivals will participate equally in the new venture. As a Financial Times story ("European Satellite Rivals Form Mobile Venture," 10/31/06) notes, the venture "is also intended to spur European equipment manufacturers, chip makers and governmental agencies to provide greater support for mobile services delivered from space, an area where the U.S. generally has taken the lead." A new satellite, designed by French telecom company Alcatel, is due to be launched by the new joint venture in 2009.
SES (Société Européenne des Satellites) is the result of a long series of mergers and acquisitions. Founded in 1985, the company has bought several other satellite firms, including GE Americom 2001) and Nordic Satellite AB (2003), and New Skies Satellite Holdings (2005).
Eutelsat was set up in 1977 and launches its first satellite in 1983. It has been on the rumor mill as both acquirer and acquiree. In 2002, it was in talks with rivals PanAmSat and Intelsat, but these came to nothing, with Intelsat buying PanAmSat in 2005.
As with so many industries, the issue of when rivals can get involved in joint ventures and still maintain a competitive market comes up. It's another case of friendly enemies.
8:04:28 PM 
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