Europe Plans €1.5B Investment to Boost Eutelsat Against Starlink

Eutelsat, a Franco-British satellite operator, is seeking additional investment from European countries to strengthen its position against Elon Musk's Starlink, which currently operates a vastly larger satellite network. France has pledged €750 million, increasing its stake to nearly 30%, and the UK will invest €163 million to maintain its share, but European lawmakers and analysts emphasize the need for broader EU support, especially from Germany, to sustain Eutelsat's ambitions and reduce Europe's reliance on U.S. satellite services amid ongoing geopolitical tensions, including the war in Ukraine. The company, burdened by debt and recently merged with OneWeb, aims to deploy 340 new satellites and expand its services, including supplying thousands of terminals in Ukraine, positioning itself as a strategic alternative to Starlink. European leaders, including President Emmanuel Macron, frame this investment as a matter of European sovereignty in digital infrastructure. While private investors like Indian billionaire Sunil Mittal's Bharti Space and French firms are involved, the scale of investment needed to compete with Starlink remains substantial. Analysts caution that the current capital increase is a short-term measure and highlight the importance of sustained political and financial commitment from multiple EU countries for Eutelsat to remain competitive.