Eutelsat needs to close funding gap to gain ground on Starlink

Satellite operator Eutelsat must secure investment from more European countries to bolster its efforts to challenge billionaire Elon Musk’s Starlink, EU lawmakers and analysts say following a commitment by France.

- GIANLUCA LO NOSTRO FLORENCE LOEVE

The debt-laden Franco-British company has gained unprecedented attention this year from European governments as the policies of President Donald Trump have raised concern about their reliance on US satellite companies.

A €1.5-billion ($1.8 billion) investment in Eutelsat led by France was expected to be approved by shareholders yesterday, after which the company hopes other countries will follow suit.

President Emmanuel Macron has urged other countries and companies to invest, framing the decision as a matter of European sovereignty.

EUROPE'S SPACE AMBITION

Christophe Grudler, a French member of the European Parliament who has urged the European Commission to find alternatives to Starlink for Ukraine as the war with Russia drags on, said Eutelsat is one of Europe's best responses to Starlink but it requires political commitment.

“France's decision to strengthen its stake is a strong political act. But it cannot stop there. Germany, and other member states, should also step in. One country alone cannot carry this continental ambition in space,” he told Reuters.

In the latest fundraising, France will commit €750 million for a 29.65% stake, while Britain will contribute €163 million to retain a 10.89% share in a twostage investment plan.