Eutelsat has secured new funding that will keep the company fully financed through the end of the decade, including its initial investment in the Iris 2 satellite project, according to CEO Eva Berneke Fallacher. Beyond this period, the company plans to be self-sustaining, citing cash flows generated by its OneWeb joint venture as offsetting declining demand for its traditional geostationary satellite services, which primarily broadcast television signals.
OneWeb’s revenues increased by nearly 60 percent in the last financial year, but the rapid shift away from cable TV subscriptions toward streaming services continues to pressure Eutelsat’s legacy video business. Over the past year, OneWeb’s revenue contribution rose to 25 percent of the group’s total from 15 percent the year prior, with Fallacher projecting that it could exceed 50 percent by 2030. Nevertheless, the costs associated with expanding OneWeb’s low Earth orbit (LEO) satellite constellation are still weighing on the company’s profit margins.
The competitive landscape for LEO satellites has intensified. Amazon recently announced plans to deploy more than 5,000 satellites by 2028, while Starlink, which began satellite launches in 2019 and now claims 12 million subscribers, has consolidated its market position through a vertically integrated model. Starlink controls satellite manufacturing, ground equipment production, and launch operations via SpaceX, enabling cost reductions for user terminals.
In contrast, Eutelsat’s current strategy does not target the consumer market but is focused on government and business clients. Fallacher noted that Eutelsat operates satellites at higher altitudes than Starlink and that the company’s relatively smaller constellation is less of a disadvantage in its chosen markets. Analyst Aleksander Peterc of Bernstein estimates that roughly 80 percent of OneWeb’s network capacity remains unused, suggesting considerable room for growth. He also highlighted OneWeb’s ability to guarantee bandwidth for clients, a service Starlink may struggle to provide in highly competitive regions.
While Eutelsat is considering entry into the consumer sector, Fallacher indicated this would likely occur after 2030 and require new satellite technology. She pointed to direct-to-device services as a potential growth area, which aim to bring connectivity directly to smartphones in regions lacking reliable mobile coverage. The company is reportedly in early discussions with multiple partners but has not disclosed details publicly.
The direct-to-device market is expanding quickly in Europe. Virgin Media O2 became the first UK operator to launch satellite-enabled mobile services via a partnership with Starlink Mobile earlier this year. Vodafone has also entered the sector with a joint venture alongside AST SpaceMobile, called Satellite Connect Europe. Both companies have announced wholesale agreements with European telecom operators, including Telefonica and Orange, with Vodafone preparing to introduce services first in the UK.
Spectrum allocation remains a critical issue. The European Commission is set to reassign part of the 2GHz band—currently operated by US providers Viasat and Echostar—when their licenses expire in May. Two-thirds of the capacity will be reserved for European direct-to-device operators, while the remainder remains open to non-European companies. The UK’s communications regulator, Ofcom, has proposed allowing current license holders interim access for three to five years before finalizing long-term spectrum use policies.
As the sector evolves rapidly, industry leaders are calling for increased regulation of space communications to ensure safety and reliability. Vodafone CEO Margherita Della Valle expressed concern over the potential for unregulated growth, warning that the industry risks becoming a “Wild West” without coordinated oversight. She emphasized the need for services that prioritize safety and align with existing standards governing everyday communications networks.