France Invests €717 Million in Eutelsat to Compete with Starlink
France is investing €717 million in Eutelsat to develop a European alternative to Starlink.
Key Points
- • France's investment of €717 million aims to boost Eutelsat's satellite capabilities.
- • This will raise France's stake in Eutelsat to approximately 30%.
- • A framework contract with Eutelsat for military communications is worth up to €1 billion.
- • Eutelsat plans a €1.35 billion capital increase with significant French involvement.
France has taken a decisive step to bolster its satellite communication capabilities by announcing an investment of €717 million (approximately US$826 million) in satellite operator Eutelsat. This move is aimed at developing a European alternative to Elon Musk's Starlink. The French finance ministry has stated that this investment will significantly enhance France's stake in Eutelsat to nearly 30%, up from under 20%, while the U.K. holds approximately 11% of the company.
This strategic investment comes alongside a newly established framework contract worth up to €1 billion between France’s Directorate General for Armament (DGA) and Eutelsat, which is designed to facilitate military-grade satellite communications. French Finance Minister Eric Lombard highlighted that this initiative underscores France's commitment to strengthening digital and industrial sovereignty within Europe.
Eutelsat also projects a capital increase of €1.35 billion, with France playing a key role in the funding. The DGA's agreement with Eutelsat aims to enhance the military communication capabilities through the OneWeb constellation, which is expected to ensure priority access to space resources for the French armed forces. The initiative illustrates a significant effort to hybridize satellite telecommunications for both military and civilian applications.