Taking on Starlink: Eutelsat's Advance in European Satellite Solutions
"Adequate for military purposes only"
French satellite operator Eutelsat asserts itself as the only viable alternative to SpaceX's Starlink in low Earth orbit. As political turmoil in the US stirs European desires for independence, Eutelsat seizes the opportunity to expand its services in Ukraine.
Eva Berneke, the Danish-born CEO of Eutelsat, believes that her company's coverage is ideal for the Ukrainian landscape. While Eutelsat currently lags behind Starlink in terms of capacity, Berneke articulates its utility for military purposes.
Eutelsat's satellite constellation, OneWeb, boasts a similar caliber of coverage and response time as Starlink, with only 600 satellites in low Earth orbit compared to Starlink's 6,000. Primarily catering to mobile network operators and governments, Eutelsat's network has proven crucial for government and institutional communications in Ukraine.
In February, the US government issues threats to shut down Starlink, which is essential for the Ukrainian army. In response, Musk, a key advisor to former President Trump, assured Ukraine's continued access to Starlink. However, the desire for a European solution persists, spurring a surge in Eutelsat's stock price.
Current discussions with Ukraine and other countries indicate an opportunity for Eutelsat. In Italy, political pressure mounts against a planned contract to use Starlink for diplomatic and military purposes. European plans to establish a satellite system named Iris2 are also underway, although operationalization may take several years.
Eutelsat has made strides in the realm of 5G satellite technology, successfully completing the world's first trial of a 5G Non-Terrestrial Network (NTN) connection. The upcoming EU investment in defense and the development of the multi-orbit constellation IRIS² furthers Eutelsat's potential as a strategic player in the satellite communications landscape.
Despite Eutelsat's advantages, such as European sovereignty and complementary capabilities, it faces challenges in matching Starlink's scale and capacity. The company's significant debt might also impact its ability to scale operations rapidly. Nonetheless, Eutelsat's commitment to innovation, coupled with European defense initiatives, promises an intriguing battle in the competitive satellite communications industry.
Enrichment Data:
Overall:
Eutelsat, with its OneWeb constellation, offers similar capabilities to Starlink in terms of coverage and response time, but with fewer satellites (over 630 compared to over 7,000 for Starlink). Eutelsat's network is used for government and institutional communications, particularly in times of conflict such as the current situation in Ukraine.
Recent Developments:
- Eutelsat completed the first trial of a 5G NTN connection using its OneWeb satellites, demonstrating the potential for future satellite and terrestrial interoperability.
- The EU plans to invest heavily in defense, aiming to reduce dependence on external technologies like Starlink, leading to a surge in Eutelsat's stock price.
- Eutelsat is a key provider for the EU's IRIS² constellation program, which aims to create a multi-orbit constellation for secure European connectivity by 2030.
Advantages:
- Alignment with EU's desire for technological self-reliance.
- Potential to provide supplementary coverage and support where Starlink may face limitations or uncertainties.
Challenges:
- Scale and capacity limitations compared to Starlink.
- Significant debt that might influence Eutelsat's capacity to rapidly scale operations.
Military Applications:
- Eutelsat's focus on government and institutional communications could make it a strong contender for secure military communications.
- European backing ensures consistent support and strategic alignment with military objectives.
However, deploying 40,000 terminals like Starlink would require significant investment and time, with Eutelsat suggesting a need for several months to achieve such a scale. Despite these challenges, Eutelsat's commitment to innovation and European defense initiatives positions it as a strategic player in the satellite communications landscape.
- The Commission has been consulted on Eutelsat's proposed collaboration with European countries for the development of the Iris2 satellite system, as the EU aims to reduce dependence on external technologies like Starlink.
- As Tesla CEO Elon Musk, a key advisor to former US President Trump, continues to support Starlink's operation in Ukraine, the European population is increasingly looking towards alternatives, such as Eutelsat, for secure satellite communication solutions.
- Eutelsat's recent success in completing the world's first trial of a 5G Non-Terrestrial Network (NTN) connection using its OneWeb satellites is a significant step towards matching or even surpassing Starlink's capabilities in the future, particularly in the rapidly growing 5G industry.
