EU to invest around €11 billion in satellite network to compete with Starlink

The European Union is committed to building a constellation of satellites worth 10.6 billion euros ($11.13 billion) to create an alternative to Ilon Musk's Starlink. This UNN reports with reference to Bloomberg.

“The EU on Monday signed contracts to start work on IRIS2, a multi-orbital network of 290 satellites due to be fully operational by 2030 that could serve European governments and militaries as well as private customers. But it is a very late start for the block as it tries to close the gap with Starlink, which boasts more than 6,000 satellites and claims customers in about 100 countries,” the report said.

It is noted that the EU is concerned about the reliance on private service after militaries around the world showed interest in Starlink apps.

The plan, which will be implemented through a public-private partnership, aims to make IRIS2 a European alternative to third-party players.

The EU satellite constellation is being built by three companies: SES SA (Luxembourg), Eutelsat SA (France ) and Hispasat SA (Spain).

The EU will invest €6 billion, companies will contribute €4.1 billion and the European Space Agency will provide €550 million. The contract will run for 12 years and part of the EU's investment will be subject to the approval of the bloc's member states.

The bloc's new commissioner for defense and space Andrius Kubilius hailed the signing as an “important step forward” for the bloc's security and defense, saying Europe was under threat in many ways, including jamming of navigation signals by russia.

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“In times of war, we can't afford to lose communications,” he said.

Starlink was a significant factor during the war in Ukraine, where Kiev's army used it to conduct military operations. Musk's advisory role in the incoming Donald Trump administration raises additional questions about how this role may affect Starlink's operations.

“There's a story going around in the industry that Starlink won and everyone else is dead, right? That's not true. They invest a lot of money, so it is very difficult to compete with them. But every country and every state wants to have sovereignty and independence. Even small countries are eager to launch a satellite,” SES CEO Adel Al-Saleh told Bloomberg.

Al-Saleh said the IRIS2 contract would allow companies such as SES, which develops higher-orbit satellites than Starlink, to thrive because the EU is their “major customer”.

SES and others will also be allowed to sell some of their services to commercial customers, and a European Commission spokesman said about half of the constellation's capacity will be reserved for government use.