France has announced that it will participate in a €717 million capital increase to help satellite operator Eutelsat expand its constellation of low-orbit communications satellites and create a European alternative to Elon Musk’s Starlink. The move was announced by the French Ministry of Finance. In addition, France’s Defense Procurement Agency (DGA) recently signed a €1 billion, 10-year framework agreement with Eutelsat to provide military-grade satellite communications.
Europe's Effort for Digital and Industrial Sovereignty
European militaries have been looking for alternatives to Starlink, as the Starlink satellite constellation operated by Elon Musk’s SpaceX in Ukraine is vital for command and control, drone operations and battlefield communications. In this context, it was previously announced that the European Union plans to launch its own satellite system called IRIS².
“France is increasing its stake in Eutelsat Group to support it at a decisive stage of its development. This increased investment reflects a clear desire to make satellite connectivity a strategic lever for digital and industrial sovereignty for our country and for Europe,” French Finance Minister Eric Lombard said in a social media post.
Financial Inclusion and Security Focused Agreements
According to Defense News, Eutelsat is planning a €1,35 billion capital increase. France’s planned participation would increase the government’s stake in Eutelsat from the current 20 percent to 30 percent. The UK government is also expected to be involved in the plan with a stake of around 11 percent.
The DGA’s space communications agreement with Eutelsat aims to complement the French Syracuse military satellites in geostationary orbit with a constellation of low-orbit satellites. According to the agency, the program, called Nexus, aims to increase the security and functionality of Eutelsat’s OneWeb constellation to increase the scope of possible military uses as the satellites are replaced. “France is firmly committed to hybridizing satellite telecommunications for its forces, combining military and civilian capabilities,” the DGA said. Under the agreement, Eutelsat will provide priority space resources to the armed forces, in particular the OneWeb constellation resources, and will increase the security of the satellites in the constellation.
