France to Become Largest Shareholder in Eutelsat with €1.35 Billion Investment to Rival Starlink
Paris, The Gulf Observer: The French government is poised to become the largest shareholder in Eutelsat, following a major €1.35 billion ($1.55 billion) capital injection aimed at strengthening the satellite operator’s position in the increasingly competitive space communications sector, dominated by Elon Musk’s Starlink.
As part of the deal announced Thursday, the French state will invest €717 million, raising its stake in Eutelsat from 13% to just under 30%. The move is seen as a strategic step to secure Europe’s autonomy in satellite communications and reduce dependence on non-European providers.
“The race is on. That’s why we have to take a position now and invest now. Otherwise, the whole market will be occupied, and France and Europe will depend on other powers in future,” French President Emmanuel Macron’s office told AFP.
The remaining funds will come from major private investors, including global shipping group CMA CGM, Indian telecoms giant Bharti Airtel, and the FSP investment fund backed by seven French insurers. The investment will be conducted in two phases—a reserved capital increase for the four named investors and a subsequent round open to other participants.
French Finance Minister Éric Lombard’s office described Eutelsat as “a strategic asset contributing to European strategic autonomy,” adding that the investment would support satellite fleet renewal, debt restructuring, and Eutelsat’s broader strategic vision.
The capital boost comes at a time of heightened geopolitical and technological urgency. The war in Ukraine has underscored the importance of resilient space-based communication infrastructure, with Starlink playing a critical role in Ukraine’s military communications. Musk previously remarked that Starlink is the “backbone” of the Ukrainian army and warned of its essential role along the front lines—prompting European governments to seek sovereign alternatives.
Eutelsat, which merged with British firm OneWeb in 2023, now operates a constellation of over 600 low Earth orbit (LEO) satellites, making it the world’s second-largest LEO satellite operator behind Starlink. The company has branded itself as “the only LEO alternative to Starlink” and is expected to play a key role in the Iris² program—a European initiative to launch a multi-orbit secure satellite communication network by 2030.
Eutelsat is also deepening its defense sector involvement. Earlier this week, the company signed a 10-year, €1 billion contract at the Paris Air Show to provide secure satellite communication services to the French armed forces.
According to Eutelsat, it is currently engaged in advanced discussions with governments both within and beyond Europe for additional commercial agreements. The company also confirmed that talks are ongoing with other investors, including the British government, which may participate in the capital raise at a later stage.
This strategic investment marks a turning point in Europe’s space ambitions, aiming to ensure that the continent remains competitive and sovereign in a domain increasingly central to security, communications, and economic resilience.
