Europe's €10.6B Iris² satellite network to rival Musk's Starlink megaconstellation
What's the story
In a major boost to its space ambitions, Europe has signed a €10.6 billion contract to develop the Iris² satellite network. The project aims to take on Elon Musk's Starlink by offering high-speed internet connectivity across Europe. This is Europe's third major space infrastructure project after the Galileo navigation system and Copernicus Earth observation network.
Financial backing
Funding and strategic importance of Iris²
While the European Commission is funding 61% of the project, the rest is being contributed by the SpaceRise industrial consortium, led by Eutelsat, Hispasat, and SES. The project was initially estimated to cost €6 billion but has since increased due to several disputes during negotiations. Timo Pesonen, Director-General for defense, industry, and space at the European Commission stressed the importance of having its own space-based communication network. Autonomous and secure connectivity was "imperative" for the EU, he said.
Project specifics
A look at the project
The SpaceRise consortium, which includes Airbus, Deutsche Telekom, Telespazio, and Thales among others, has been given a 12-year concession to design, build and operate Iris². The project aims to deploy 290 satellites in low and medium Earth orbits with operations slated to start by early 2030, Financial Times reports. A major chunk of its capacity will be allocated for commercial broadband services for businesses and households.
Financial contribution
Eutelsat's investment and technology integration plans
As the largest private-sector contributor to the project, Eutelsat is investing €2 billion. Eutelsat's Chief Executive Eva Berneke said their investment wouldn't be needed until 2028 when production starts. The tech developed for Iris² will be integrated into Eutelsat's OneWeb satellites sooner, Berneke revealed. "We get access, and maybe even faster access, to the technologies where the costs are being, to a very large extent, financed by public funds," she said.
Industry influence
Potential impact on Europe's space industry
The program seeks to reinvigorate Europe's space industry as it faces competition from mega-constellations of smaller spacecraft in low-Earth orbit. Thales and Airbus recently announced layoffs as their geostationary satellite businesses have been declining. A report from Italian economist Mario Draghi noted Starlink's disruption of European telecom operators and manufacturers. European Space Agency's (ESA) Josef Aschbacher believes Iris² will "foster innovation" and "boost European competitiveness."
Contract distribution
Contract allocation and Europe's strategic agenda
Philippe Baptiste of French space agency CNES clarified that no nation is guaranteed dominance in Iris² contracts; it will be competitiveness that will determine who the suppliers will be. He noted that while France could benefit significantly, companies like Thales or Airbus will have to prove their competitiveness. Baptiste emphasized that gaining leadership in tech is crucial for Europe's strategic agenda and competitiveness in space-based telecom markets, shifting toward low-Earth orbit systems.