EOS Completes Acquisition of Satellite Communications Business

The Acquisition was completed on 28 May 2020. EOS will now move forward to deploy communication satellites in a constellation which EOS has named EOSLink.

The EOS strategic approach to space communications is based on the widely-held industry view that optical communications, where EOS has very advanced technology and strong capabilities, will carry the majority of space communication traffic by 2036. This traffic is then expected to be around 100 times the volume of today, but will generate revenues for service providers at only the same level as today. For the market segment EOS intends to service, which excludes broadcast and internet applications, this revenue currently exceeds AU$100 billion annually. EOS intends to address a niche in this segment.

Market demand for aggressive improvements in price-performance is severely disrupting an industry facing the capacity limits of current radio frequency (“RF”) technology. There are mounting corporate casualties of the trend toward higher capacity at a lower delivered cost. This rationalisation of the industry is likely to continue for some time.
EOS has chosen to enter this disrupted market now, by acquisition, to become a full service space communications provider.

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