Sharp, SES target Japan MEO satellite services

Sharp and SES have formed a partnership to introduce Mid-Earth Orbit (MEO) satellite services in Japan. This collaboration aims to meet the increasing need for advanced satellite connectivity, particularly within industrial sectors. It represents a strategic effort by both companies to expand the applications and market reach of MEO satellite technology beyond its conventional uses.

This development matters because it indicates a growing demand for robust satellite communication infrastructure, especially for cloud-based applications and resilient supply chain management. By targeting industrial sectors, Sharp and SES are tapping into new revenue opportunities within the competitive space communications market, potentially accelerating the adoption of MEO services.

The mechanism involves SES providing its MEO satellite constellation capabilities, known for lower latency and higher throughput compared to geostationary satellites, while Sharp likely contributes its market presence and integration expertise in Japan. This synergy allows them to offer high-speed, reliable connectivity solutions tailored for data-intensive industrial operations and critical infrastructure.

This partnership directly impacts SES (SESG.PA), a global satellite operator, by potentially increasing its MEO service revenue and market share in Asia. Sharp (6753.T) could see new business growth in its communication solutions segment. The broader satellite communications industry, including competitors like Viasat (VSAT) and Eutelsat (ETL.PA), may face increased competition and pressure to innovate in advanced connectivity offerings.