France takes aim at Starlink with big bet on Eutelsat
France has announced plans to significantly increase its stake in satellite operator Eutelsat, contributing €717 million (approximately US$826 million) to a capital expansion aimed at boosting Europe’s capabilities in low-Earth orbit communications, reports a Kazinform News Agency correspondent.
The move is part of a broader strategic effort to establish a sovereign European alternative to the U.S.-based Starlink system operated by Elon Musk’s SpaceX.
The French Ministry of Economy and Finance confirmed the decision, highlighting the need for enhanced satellite connectivity infrastructure to support both civilian and military needs.
“France is increasing its stake in the Eutelsat Group to support it in a decisive phase of its development,” stated French Finance Minister Éric Lombard. “This increased investment reflects a clear desire to make satellite connectivity a strategic lever for digital and industrial sovereignty for our country and for Europe.”
The announcement came on the heels of a major defense contract between France’s Directorate General of Armament (DGA) and Eutelsat. The 10-year framework agreement is valued at up to €1 billion and is intended to provide military-grade satellite communication services. It is seen as a response to growing European interest in replicating the success of Starlink in Ukraine, where SpaceX’s satellite constellation has played a critical role in command and control, drone coordination, and battlefield communications.
While the European Union has launched its own IRIS² satellite broadband initiative, it currently lacks the scale and operational coverage of Starlink. Eutelsat, in partnership with SES and Hispasat, was selected by the European Commission in November to implement the IRIS² program.
Eutelsat plans to raise a total of €1.35 billion in fresh capital, with France’s contribution expected to increase its ownership stake to around 30%, up from less than 20%. The United Kingdom, which also holds a stake of nearly 11% in Eutelsat, remains a key shareholder following the merger between Eutelsat and OneWeb.
The DGA contract aims to integrate Eutelsat’s expanding low-Earth orbit constellation—operated under the OneWeb brand—into France’s national defense architecture. The program, dubbed Nexus, is designed to supplement the country’s existing Syracuse geostationary military satellites and enhance the security and flexibility of satellite communication for defense operations.
“France is thus resolutely committed to a process of hybridizing the means of telecommunications by satellite for its forces, combining military and civilian capabilities,” the DGA said in a statement.
As part of the Nexus program, Eutelsat will allocate priority access to space-based resources for the French armed forces, with a particular focus on the OneWeb constellation. Measures will also be taken to reinforce the cybersecurity and resilience of the satellites involved.
Earlier, it was reported that the Ministry of Digital Development, Innovation and Aerospace Industry of Kazakhstan and Starlink, a subsidiary of SpaceX, signed an agreement under which Starlink commits to providing satellite internet services in compliance with the laws of the Republic of Kazakhstan.
