Eutelsat Seeks More EU Investment to Compete with Starlink

Post by : Monika

Eutelsat, a major Franco-British satellite company, is working hard to expand its satellite internet services and compete with Elon Musk’s Starlink. The company is looking for additional investments from European countries to fill a large funding gap.

France has pledged €750 million to acquire a 29.65% stake in Eutelsat, and the United Kingdom has committed €163 million to maintain its 10.89% share. The total funding required is approximately €1.5 billion. This investment is crucial for Eutelsat as it works to grow its OneWeb low Earth orbit (LEO) satellite network, which it acquired in 2023.

The OneWeb constellation aims to provide high-speed internet to regions with poor or no traditional broadband connections. The satellites operate in low Earth orbit, which allows for faster internet speeds and lower latency compared to traditional geostationary satellites. The deployment of these satellites is key to Eutelsat’s strategy to compete globally and to offer an alternative to Starlink.

The Importance of European Investment

European Union countries have expressed concern about relying on U.S.-based satellite networks, particularly Starlink. Starlink, run by SpaceX, is currently the dominant provider of global satellite internet. However, European policymakers are emphasizing the need for Europe to have its own independent satellite capabilities.

French President Emmanuel Macron has encouraged other EU countries, especially Germany, to invest in Eutelsat. The goal is to create a strong European satellite internet network that can operate independently and reduce reliance on non-European providers. This initiative is considered essential for European sovereignty in space and for ensuring secure and reliable internet connectivity across Europe.

Eutelsat’s Strategic Role in Satellite Internet

Eutelsat is one of the few companies capable of providing global satellite internet coverage outside of Starlink. The company operates more than 650 satellites, compared to Starlink’s approximately 8,000. Although Starlink has a larger network, Eutelsat’s OneWeb satellites are strategically designed to deliver high-speed, low-latency internet to underserved areas.

The European Commission has been actively supporting efforts to strengthen the continent’s satellite infrastructure. For example, initiatives like IRIS² are being developed to enhance Europe’s capabilities in space communication and to provide a long-term strategic framework for satellite networks. These efforts complement Eutelsat’s work and aim to ensure that Europe can maintain independent internet connectivity and secure communications.

Why Investment Matters

Eutelsat requires significant funding to continue the deployment of its OneWeb satellites and expand its services. Satellite development and launch are expensive processes, and the company needs substantial financial backing to compete with Starlink’s rapid growth. Without sufficient investment, Eutelsat could struggle to keep pace with demand for satellite internet services and to maintain its position in the global market.

The funding gap that Eutelsat faces is a key challenge. The €1.5 billion investment round led by France and the United Kingdom is seen as the first step toward bridging this gap. However, additional contributions from other EU member states are necessary to ensure the company has enough resources to complete its satellite launches, expand its coverage, and develop infrastructure for ground-based internet services.

Opportunities in the Satellite Internet Market

The global demand for reliable internet connectivity continues to grow, particularly in remote or underserved regions. Traditional broadband networks often do not reach rural or isolated areas, leaving millions without access to high-speed internet. Satellite internet providers like Eutelsat and Starlink are filling this gap, offering connectivity where fiber optic cables and other technologies are impractical.

Eutelsat’s OneWeb network targets these underserved regions, providing an opportunity for the company to expand its market share. By increasing the number of satellites and improving infrastructure, Eutelsat can offer high-quality internet services to areas that currently have limited options. This not only supports economic development in remote regions but also increases the company’s revenue potential.

European Governments’ Strategic Interests

European governments see the development of a robust, independent satellite internet network as critical for both strategic and economic reasons. A European-controlled system reduces reliance on U.S. technology and ensures that communications remain under European oversight. This is particularly important for sensitive applications such as defense, government communications, and emergency services.

Germany has already supported Ukraine’s access to Eutelsat’s satellite internet during ongoing conflicts, demonstrating the practical value of having an independent European network. Other EU countries are being encouraged to participate in the investment round to strengthen Europe’s overall space infrastructure.

Challenges Eutelsat Faces

Despite its capabilities, Eutelsat faces several challenges. Launching and maintaining satellites requires a large financial investment, and delays or failures in deployment could hinder the company’s competitiveness. The company also faces stiff competition from Starlink, which has already established a large network and a loyal customer base worldwide.

Furthermore, as demand for satellite internet grows, maintaining reliable service and expanding coverage quickly is critical. Any gap in funding or operational setbacks could slow Eutelsat’s progress and allow competitors to dominate key markets.

The Benefits of a Strong OneWeb Network

If Eutelsat secures sufficient funding, it can accelerate the deployment of its OneWeb satellite constellation. This expansion will allow the company to provide internet services to millions of people who currently lack access. It will also improve service in urban areas where fiber and cable networks are overloaded, offering redundancy and reliability.

A well-funded OneWeb network will also provide Europe with a strategic advantage. In times of conflict or international tensions, having an independent European satellite network ensures that critical communications remain under European control. This reduces dependence on foreign infrastructure and increases Europe’s autonomy in space-based technologies.

Future Prospects and Market Expansion

Eutelsat plans to continue growing its satellite network over the next several years. By increasing the number of satellites and enhancing ground infrastructure, the company aims to provide comprehensive global coverage. Expansion plans also include partnerships with telecom providers and governments to deliver affordable internet services in emerging markets.

In addition to direct consumer and enterprise internet services, Eutelsat is exploring opportunities in areas such as maritime, aviation, and defense communications. These sectors require reliable, high-speed connectivity even in remote or hard-to-reach locations, making satellite internet an ideal solution.

Eutelsat’s effort to secure European investment is critical for its ability to compete with Starlink and to strengthen Europe’s role in the global satellite internet market. With financial support from France, the UK, and potentially other EU member states, the company can deploy more satellites, expand services, and provide reliable internet to underserved areas worldwide.

The strategic importance of having an independent European satellite network cannot be overstated. It ensures secure communications, reduces reliance on foreign technology, and provides opportunities for economic growth and technological innovation.

As demand for satellite internet continues to rise, Eutelsat’s success will depend on timely funding, effective deployment of satellites, and partnerships with governments and private enterprises. With these measures in place, Europe can develop a strong, independent presence in space-based internet services, providing both strategic and economic benefits for years to come.

By investing in Eutelsat, European countries are not only supporting a commercial company but are also building a foundation for secure, reliable, and independent communication infrastructure that benefits citizens, businesses, and governments alike.

Eutelsat Starlink satellite internet