Eutelsat’s Strategic African Expansion Gains Momentum

Eutelsat is moving from successful testing into active deployment, launching a project to provide connectivity for Gabon's "Transgabonais" railway line. The satellite operator, in partnership with Airtel Gabon, is now supplying passenger trains with broadband internet via its OneWeb constellation. This initiative arrives at a pivotal moment, as competitor Starlink faces regulatory hurdles in neighboring Uganda, allowing Eutelsat to strategically position itself as a dependable partner for business-to-business infrastructure projects across the African continent.

The timing of this deal appears strategically advantageous. Regulatory authorities in Uganda recently mandated a temporary suspension of Starlink's services, creating an opening. Eutelsat is leveraging this disruption to establish its credentials as a stable and compliant provider for African governments and large-scale enterprises.

While Starlink focuses heavily on the direct-to-consumer market, Eutelsat is pursuing a B2B2C model. This approach combines its GEO and LEO satellite capacities with local telecommunications partnerships, such as with Airtel or the Paratus Group. This structure is designed to be more resilient to unilateral regulatory changes. The railway contract exemplifies this strategy, where local partners hold the necessary licenses and the business model supports higher margins than the pure consumer segment.

Key Project Details:
* During testing, OneWeb terminals delivered speeds of up to 100 Mbps on moving trains.
* The collaboration with Airtel Gabon as the in-country partner helps mitigate regulatory risks.
* This project is intended to serve as a template for future infrastructure agreements in the region.

Should investors sell immediately? Or is it worth buying Eutelsat?

Investor Sentiment Remains Cautious

The market's reaction to these developments has been measured. Eutelsat shares edged up by 0.16 percent yesterday, closing at €1.85, a level that indicates stabilization but at a low point. Investors continue to exhibit caution, awaiting evidence that such individual projects can collectively generate sufficient revenue to offset the substantial investment costs for the Gen-2 satellite fleet and contribute meaningfully to debt reduction.

Following technical challenges earlier in 2025—including software issues within the ground segment—company leadership is now intensely focused on operational execution and effectively monetizing its satellite assets.

The Path Forward Hinges on Scale

Two critical factors will determine the success of this African strategy. First is scalability: will this lead to additional agreements with Airtel in other markets like Kenya or Nigeria? Second is revenue impact: how quickly will these B2B contracts translate into improved cash flow?

If Eutelsat can successfully capitalize on the temporary vulnerabilities of competitors in specific regions, it may provide a short-term boost for the equity. From a chart perspective, however, the stock remains under pressure and will require a consistent stream of positive operational updates to reverse its prevailing downward trend.