The UK and France come together to support a €1.5 billion initiative aimed at enhancing Europe’s competitor to Starlink.
The UK government is reportedly set to invest €163 million in the French satellite company Eutelsat as Europe seeks to support a local alternative to Elon Musk’s Starlink. This investment, initially reported by Reuters, follows the French government's plan to contribute €717 million to Eutelsat as part of a €1.35 billion funding package aimed at assisting the financially troubled satellite communications provider. With the UK’s contribution, Eutelsat's recapitalization would reach approximately €1.5 billion.
French President Emmanuel Macron expressed his gratitude to his "British friends" for their support in a post on X, although he did not reveal the specifics of the deal.
Eutelsat has garnered significant attention this year as European leaders strive to decrease their dependence on Starlink, particularly in Ukraine, which has become heavily reliant on the service amid its conflict with Russia.
The French company operates the third-largest satellite communications fleet, comprising 653 satellites orbiting Earth at an altitude of about 1,200 km. Eutelsat has previously indicated to TNW that it provides comparable coverage and latency capabilities to those of Starlink in Europe.
In June, French Finance Minister Eric Lombard characterized his country's investment as part of its broader goal to establish a competitive, resilient, and sovereign space industry. "This transaction reflects our strong commitment toward a major player in satellite connectivity—a strategic sector central to Europe’s digital sovereignty," he stated.
This funding serves as a crucial support for Eutelsat, which reported a net debt of €2.6 billion at the close of 2024. It could also assist the company in contributing to the deployment of IRIS2, a European public-private satellite internet constellation expected to launch in 2030.
IRIS2 aims to create a genuinely sovereign satellite communications system in Europe, building on Eutelsat’s existing fleet and that of SES, a Luxembourg-based satellite company. Lombard indicated that the IRIS2 project would serve as a "key pillar" of Europe’s autonomy in space. However, this initiative will enter an already competitive satellite communications market.
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The UK and France come together to support a €1.5 billion initiative aimed at enhancing Europe’s competitor to Starlink.
The UK government is said to be planning to invest €163 million in the French satellite company Eutelsat as Europe seeks to find an alternative to Elon Musk's Starlink.