UK and France Back €1.5B Plan to Rival Starlink in Europe
▼ Summary
– The UK plans to invest €163mn in French satellite firm Eutelsat, supporting Europe’s effort to create a local alternative to Starlink.
– The investment is part of a €1.5bn recapitalization, with France contributing €717mn to the indebted company.
– European leaders aim to reduce reliance on Starlink, especially in Ukraine, where it has become critical during the war with Russia.
– Eutelsat operates the third-largest satellite fleet and matches Starlink’s coverage and latency capabilities in Europe.
– The funding will help Eutelsat contribute to IRIS2, a European satellite internet constellation set to launch in 2030, enhancing Europe’s digital sovereignty.
The UK and France have joined forces to support a €1.5 billion initiative aimed at creating a European rival to SpaceX’s Starlink satellite network. Reports indicate the British government is preparing to invest €163 million in Eutelsat, a major French satellite operator, as part of a broader effort to strengthen Europe’s independent space capabilities.
This move aligns with France’s commitment to inject €717 million into Eutelsat, forming a substantial financial boost for the company. Combined, the investments total approximately €1.5 billion, providing critical support for the satellite firm, which has faced significant debt challenges. French President Emmanuel Macron publicly acknowledged the UK’s involvement, though specific financial details were not disclosed.
The push for a European alternative to Starlink has gained urgency, particularly due to concerns over reliance on foreign satellite networks. Ukraine’s heavy dependence on Starlink during its conflict with Russia has underscored the need for regional autonomy in space-based communications. Eutelsat, which operates the third-largest satellite fleet globally, claims its services match Starlink’s coverage and latency performance across Europe.
France’s Finance Minister, Eric Lombard, emphasized the strategic importance of this investment, framing it as a step toward a more competitive and self-sufficient European space industry. “This deal reinforces our commitment to satellite connectivity, a sector vital for Europe’s digital sovereignty,” he stated.
The funding arrives at a crucial time for Eutelsat, which reported a net debt of €2.6 billion at the end of 2024. Beyond stabilizing the company, the investment is expected to support the development of IRIS2, a European satellite internet constellation slated for launch by 2030. This ambitious project, a collaboration between public and private entities, aims to establish a fully sovereign communications network by leveraging Eutelsat’s existing infrastructure alongside Luxembourg-based SES.
Lombard described IRIS2 as a cornerstone of Europe’s space independence, though the initiative will face stiff competition in an already congested satellite market. With global players like Starlink and Amazon’s Project Kuiper expanding rapidly, Europe’s ability to carve out its own niche remains a significant challenge, and a top priority for policymakers.
(Source: The Next Web)
