Satellite and Space Projects Newsletter May 2025

For most, this will include reviewing the contractual allocation of tariff/duty risk in their supplier and customer/distribution agreements. Many will also be focused on working through the impact of new or increased tariffs and assessing the mitigation measures available. Some will also be looking at the risk of "dumping" of low-cost products on the UK/EU/other markets as producers look to sell products/production runs to non-US markets. Please contact us if you would like to discuss how to navigate the new trade and tariff landscape.

SES-Intelsat merger under investigation by UK regulator: the UK’s Competition and Markets Authority (CMA) has launched a Phase 1 investigation into SES’s proposed €2.8 billion acquisition of Intelsat, announced on 30 April 2024. The inquiry, which began on 11 April 2025, aims to determine whether the merger would result in a substantial reduction in competition in the UK satellite connectivity market. The CMA is aiming to announce its decision by 12 June 2025 on whether to proceed to a more in-depth Phase 2 investigation.

New AI laws roll out across EU: following the prohibition on certain AI systems and requirements for AI literacy, which began to apply from February 2025, the next major phase of the AI Act is coming soon. From August 2025 general purpose AI (GPAI) models will be regulated and new governance rules will apply, as well as penalties for breach of the AI Act obligations. National regulators for AI models are to be identified by August 2025.

This new AI law will affect businesses in the EU and many from outside the EU who trade with the EU using AI. For further detail on how the AI Act applies to the space sector, please click here or contact us.

First Kuiper satellites launched: Amazon successfully launched its first 27 satellites from Cape Canaveral on 28 April aboard a ULA Atlas V rocket. After some delays over recent weeks, the inaugural launch took the first batch of satellites into orbit, with the objective of testing its end-to-end connectivity, including space and ground infrastructure. Kuiper has an FCC deadline of July 2026 to launch at least 50% of the planned 3,200+ satellites. Project Kuiper will offer broadband internet access from a LEO constellation in three orbital layers at 590 km, 610 km and 630 km altitude.

Aetherflux raises $50 million: solar power satellite venture Aetherflux has raised $50 million in a Series A funding round led by Index Ventures and Interlagos, with participation from Breakthrough Energy Ventures, Andreessen Horowitz, and NEA. The company plans to develop a constellation of satellites to collect solar power and beam it to Earth using lasers, aiming for a demonstration mission in 2026. Founder Baiju Bhatt believes this approach addresses the limitations of previous designs.

Aetherflux has secured US government funding for a study through the Defense Department’s Operational Energy Capability Improvement Fund (OECIF) to support a proof of concept for power transmission from Low Earth Orbit.

Hughes and Eutelsat expand LEO partnership: Hughes Network Systems and Eutelsat have strengthened their collaboration to deliver Low Earth Orbit satellite services across Europe. Combining Eutelsat’s OneWeb high-speed, low-latency LEO satellite broadband services with Hughes ground equipment, the joint offering will deliver enhanced connectivity for enterprises.

Hughes is developing gateway electronics and user terminal technology for the OneWeb system, including an electronically steerable flat-panel antenna. This partnership aims to provide reliable, high-quality connections for sectors such as manufacturing, construction, power generation and government.

Telesat reduces Lightspeed fleet: Telesat has announced a significant reduction in the size of its proposed Lightspeed Low Earth Orbit (LEO) satellite fleet, cutting it from 1,671 satellites to 300. The revised plan involves operating the satellites at higher orbital altitudes, with the initial launches now set to include 156 satellites at 1,335 km and 108 satellites at 1,325 km. Telesat aims to begin launching the satellites in 2026 and expects to commence service in 2027. The company has secured orders from the Canadian government and Viasat for capacity once the Lightspeed fleet is operational.

MDA Space to acquire SatixFy: MDA Space has announced plans to acquire Israeli satellite chipmaker SatixFy for $269 million. This acquisition will vertically integrate SatixFy’s technology—including satellite payload chipsets, gateways, multi-beam digital antennas, user terminals, and modems—into MDA Space, enabling the production of two satellites per day with software-defined payloads. SatixFy, which has invested around $270 million in research and development since its founding in 2012, will contribute over 60 patents and a team of 165 specialised technical staff to MDA.