France Increases Investment in Eutelsat to Support European Rival to Starlink

In a strategic move to enhance European satellite independence, France has announced a €717 million investment in satellite operator Eutelsat, increasing its government stake from under 20% to approximately 30%. The capital injection is part of a broader €1.35 billion funding round aimed at expanding Eutelsat’s low-Earth orbit (LEO) constellation and supporting Europe’s ambition to develop a sovereign alternative to SpaceX’s Starlink.

The decision comes amid growing concern across Europe’s defense and tech sectors over reliance on foreign satellite networks. The role of Starlink in Ukraine—where it has been vital for battlefield communications, drone operations, and command and control—has served as a stark example of how critical satellite broadband has become to modern warfare.

Military Partnership with Eutelsat

Alongside the capital increase, France’s Directorate General for Armament (DGA) has signed a 10-year framework agreement worth up to €1 billion with Eutelsat to deliver secure, high-grade military satellite communications. The initiative will work in tandem with France’s existing Syracuse satellites in geostationary orbit, supplementing them with a LEO-based solution under a new program called Nexus.

The Nexus program will focus on strengthening the OneWeb constellation, in which Eutelsat is a key player, with the goal of expanding its military and dual-use capabilities. According to the DGA, this effort represents France’s “commitment to hybridizing military and civilian satellite communications” to ensure secure, flexible coverage for armed forces.

A Strategic Pivot for European Sovereignty

French Finance Minister Eric Lombard highlighted the geopolitical significance of the move, describing satellite connectivity as a “strategic lever for digital and industrial sovereignty.” The increased investment underscores France’s intention to make Eutelsat a cornerstone of Europe’s autonomous satellite strategy.

The European Union’s IRIS² initiative, announced last year, aims to establish a pan-European satellite broadband system—but is still in its early stages and lacks the global coverage and deployment speed of Starlink. Eutelsat, SES, and Hispasat have been selected by the European Commission to lead the IRIS² deployment effort.

U.K. Also Holds Stake in Eutelsat

Eutelsat’s growing international role is reinforced by its multinational shareholder base. The U.K. government currently holds nearly 11% of Eutelsat shares, a result of its earlier investment in the OneWeb rescue following the company’s bankruptcy in 2020. The evolving structure positions Eutelsat as a key player in bridging civilian and defense communications for both national and EU-level priorities.