The recent $1.8 trillion initial public offering (IPO) of Elon Musk’s SpaceX has brought the space industry into the mainstream financial spotlight while highlighting the formidable challenge faced by competing satellite broadband providers. At the center of this competition is Starlink, SpaceX’s low Earth orbit (LEO) satellite constellation, which Musk envisions as a network of around 10,000 satellites delivering high-speed, low-latency internet globally.
Jean-François Fallacher, chief executive of Paris-based satellite operator Eutelsat, acknowledges the significant resources backing Starlink’s expansion, citing Musk’s $85 billion raise as a major hurdle for rivals. However, Fallacher also pointed to increased transparency following SpaceX’s IPO, noting that public scrutiny may provide insights into the company’s evolving profitability and future direction.
Eutelsat owns OneWeb, currently the only European alternative to Starlink’s LEO network. Acquired in 2023, OneWeb operates about 650 satellites from its headquarters in west London. Both the French and British governments continue to hold stakes in Eutelsat, underscoring the strategic importance of maintaining European sovereignty in space technologies. According to Fallacher, this aspect has gained prominence, especially since Starlink’s critical role in providing internet connectivity to Ukraine’s front lines drew attention to the risks of reliance on non-European infrastructure.
The push for European independence in space communications has also been accelerated by concerns over the U.S. government’s regulatory controls on technology exports, exemplified by former President Trump’s restrictions on San Francisco-based Anthropic’s AI models. Fallacher highlighted the clearer governance mechanisms in Europe as a protective measure compared to the more tightly held control at SpaceX.
Central to Europe’s initiative is Iris 2, a multi-orbit satellite constellation intended to deliver secure and sovereign connectivity across the continent. Eutelsat is the largest private sector stakeholder in the project, contributing just over €2 billion to the estimated €15.6 billion cost, with about €11.6 billion funded by the European Union. The constellation is designed to have nearly twice the capacity of the current OneWeb network.
In May 2026, the European Commission finalized a contract to expand Iris 2 to 348 satellites, targeting deployment by 2032. This system aims to support European governments, defense forces, emergency services, and security agencies with reliable connectivity. Meanwhile, OneWeb plans to launch 440 replacement and additional satellites over the next two years, with a further 229 satellites scheduled through 2034 to maintain ongoing service during the transition to Iris 2.
OneWeb’s path has been marked by financial challenges since its founding in 2012 by entrepreneur Greg Wyler. The company attracted early backers such as Sir Richard Branson and SoftBank but filed for bankruptcy during the COVID-19 pandemic. It was subsequently bailed out by the British government and taken over by Eutelsat in a $3.4 billion deal aimed at stabilizing and advancing its technology.
Among OneWeb’s significant shareholders is Indian telecom tycoon Sunil Mittal, who also holds the largest stake in BT. His active involvement reflects broader international interest in maintaining the program’s viability. Fallacher took the helm at Eutelsat in 2025, shortly before initiating a €5 billion refinancing intended to address a €4 billion funding gap worsened by declining revenue in the company’s traditional geostationary satellite business.
As Europe seeks to establish a credible alternative to Starlink, the successful deployment and expansion of Iris 2 will be critical for maintaining technological sovereignty and securing satellite broadband capacity for the continent in the coming decade.