EU signs deal to build €10.6bn satellite network to rival Starlink

16 Dec 2024

Image: © NicoElNino/Stock.adobe.com

The proposed network stemming from the billion-euro deal is expected to come online by 2030.

The European Commission has signed a deal with the SpaceRISE consortium for the Infrastructure for Resilience, Interconnectivity and Security by Satellite (IRIS²), a constellation of 290 satellites.

The 12-year contract, which is valued at €10.6bn, aims to develop, deploy, and operate the proposed satellite network to provide secure connections for EU member states and governmental authorities, as well as improved broadband for private companies and European citizens.

It is ultimately planned for the proposed satellite network to rival Elon Musk-owned SpaceX’s Starlink, the network which currently controls nearly two-thirds of all active satellites and has launched about 7,000 satellites since 2018.

The SpaceRISE consortium, which has been entrusted with the implementation of IRIS², includes three Europe-based satellite network operators – SES SA, Eutelsat SA, and Hispasat SA – and is supported by a core team of European subcontractors from the satcom ecosystem. Some of its partners include Thales Alenia Space, Deutsche Telekom, Orange, Hisdesat, and Thales Six.

Under the agreement with SpaceRISE, the project will be backed by €6.5bn of public funds representing nearly 60pc of the total project costs, comprising funding from the Commission, EU member states, the European Space Agency and private financing from the consortium members. Future funding beyond 2027 will be subject to the adoption of programmes by both the European Parliament and Council.

If the project is successful, it would reduce the EU’s reliance on third-party services. The network is expected to go live by 2030.

‘A testament to Europe’s ambition and unity’

The Commission’s executive VP for tech sovereignty, security and democracy, Henna Virkkunen, welcomed the deal, and said that IRIS² is “a testament to Europe’s ambition and unity”.

“This cutting-edge constellation will protect our critical infrastructures, connect our most remote areas and increase Europe’s strategic autonomy,” Virkunnen added. “By partnering with the SpaceRISE consortium, we are demonstrating the power of public-private collaboration to drive innovation and deliver tangible benefits to all Europeans.”

Similar sentiments were shared by Andrius Kubilius, the European commissioner for defence and space, who said: “Today we are not just launching a satellite project, we are launching a vision – a vision of a stronger, more connected, and more resilient Europe.”

The EU already has several satellite systems in place, including Galileo and Copernicus. Thierry Breton, former commissioner for internal market, previously said that strategic autonomy and sovereignty is a key part of the EU’s space strategy.

The IRIS² constellation was initially announced in February 2022, with the EU promising €6bn in funding for the project at the time.

In March of 2023, the Commission launched an invitation to industry professionals, appealing to them to submit proposals for a contract aimed at implementing the IRIS² constellation.

Earlier this year, Reuters reported that Federal Communications Commission chair Jessica Rosenworcel expressed her wish to see more competition to Elon Musk’s Starlink network.

Rosenworcel said at the time that Starlink “has almost two-thirds of the satellites that are in space right now and has a very high portion of internet traffic.

“Our economy doesn’t benefit from monopolies, so we’ve got to invite many more space actors in, many more companies that can develop constellations and innovations in space.”

In August, China announced that it would take on SpaceX with its own version of Starlink.

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Ciarán Mather is a senior journalist with Silicon Republic

editorial@siliconrepublic.com