Eutelsat Communications SA in France has ordered a new satellite with a view of boosting its broadband as well as in-flight connectivity services. Their previous plan of investing in ViaSat-3 with ViaSat Inc has reportedly been abandoned.

Operational from 2012, the Konnect VHTS satellite is supposed to be made by Thales SA, which is a Paris-based aerospace and defense manufacturer. In other news, Eutelsat has also said to have signed a multiyear contract with Orange SA that is arguably the country`s biggest phone carrier. This is done with the idea of selling service to customers that most ground networks cannot reach to. Thales is said to have plans to work with buyers from the government.

The undisclosed cost of this project will be taken cared by Paris-based Eutelsat’s 420 million euro or 514 million dollars of their annual spending plan. This was initially held as the budget for the ViaSat project. Konnect VHTS, where VHTS stands for Very High Throughput Satellite, is super fast and is expected to deliver 500 gigabit per second Ka band. In the near future, the Very High Throughput Satellites will prove to be “fiber-like” in terms of speed as well as cost. This is the expectation cited by their Chief Executive Officer, Rodolphe Belmer. He also predicted that high-speed broadband will be one of the critical drivers of the company Eutelsat’s growth from the time of its purchase, that is, from 2020.

ViaSat also reacted to this news and issued an email statement stating that its capital plan was not dependent on Eutelsat’s participation and their change of plans had no direct impact on their existing contracts with the company. They further clarified that even though they had wanted to arrive at a mutually decided agreement on future funding, but since the participating parties in the negotiation did not get to agree over some of the fundamental principles of the company, they could not see the end to this agreement.

On Thurday, the California-based company’s stock shares saw a 4.9% decline, closing at $63.75 in New York. The same stock had been on a rise of 1.6 % prior to this very news. Eutelsat`s shares also saw a significant low, and fell by 1.8 %; closing at 16.63 euros in Paris on the following day of the news, that is, Friday.