In the rapidly evolving space race, Europe is betting on its own satellite operator, Eutelsat, to challenge the dominance of Elon Musk’s Starlink. Backed by a significant investment from the French government, Eutelsat is being positioned as a critical player in Europe’s quest for technological sovereignty. However, experts remain skeptical about whether the company can truly rival Starlink’s scale and capabilities.
The Stakes for Europe
France’s recent €1.35 billion ($1.58 billion) investment in Eutelsat underscores the importance of the satellite operator in Europe’s broader strategy for independence in space technology. This move makes the French government Eutelsat’s largest shareholder, with a 30% stake. French President Emmanuel Macron has emphasized the importance of space as a marker of international power, urging Europe to increase its investments in the sector.
Eutelsat’s merger with British satellite company OneWeb in 2023 was a significant step toward consolidating Europe’s satellite communications industry. The company touts itself as the only European operator with a fully operational Low Earth Orbit (LEO) network, a vital component of satellite internet services. But despite these advancements, Eutelsat still lags far behind Starlink.
The Challenge of Scale
Starlink, owned by SpaceX, operates a constellation of over 7,000 satellites, dwarfing Eutelsat’s OneWeb, which has only 650 LEO satellites. Adding to the challenge is the fact that many of OneWeb’s satellites are nearing the end of their lifespan. To compete, Eutelsat would need to not only replace these aging satellites but also dramatically expand its network.
“Eutelsat’s chances of achieving parity with Starlink in the mass-market satellite broadband segment within the next five years remain limited,” said Luke Kehoe, an industry analyst at Ookla. He highlighted that Starlink’s unmatched scale, manufacturing capabilities, and access to satellite launches give it a formidable edge.
Joe Gardiner, a research analyst at CCS Insight, echoed this sentiment, noting that Eutelsat’s “bent-pipe” satellite architecture is less capable than Starlink’s advanced systems. This means Eutelsat would need to invest heavily in second-generation satellites to close the technological gap.
Strategic Advantages for Eutelsat
While Eutelsat may struggle to compete with Starlink in terms of raw scale and global reach, it has other advantages. The company is well-positioned to serve European markets that prioritize jurisdictional control and security over sheer satellite capacity. This includes enterprise clients and government contracts, particularly in areas like defense and security-sensitive communications.
Earlier this year, Germany deployed 1,000 Eutelsat terminals in Ukraine as a backup for Starlink’s 50,000 terminals. Although Starlink remains the primary provider for Ukraine’s military, this move highlights Eutelsat’s potential as a regional alternative in strategic contexts.
Eutelsat’s geostationary orbit (GEO) satellites also offer unique capabilities. Operating at higher altitudes than LEO satellites, GEO satellites can cover larger areas with fewer units, making them suitable for specialized use cases like polar coverage in Greenland and Alaska.
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