Elon Musk will face some stiff competition from Europe’s answer to Starlink now that the French government is behind it. The French state is set to become Eutelsat’s biggest shareholder following a $1.55 billion (or 1.35 billion euros) investment that the financial ministry said will help the satellite company compete with Musk’s Starlink.
“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,” Macron’s office told AFP.
Over $750 million capital injection by the French state, which was part of an overall deal with other investors worth $1.55 billion, will make Paris Eutelsat’s largest shareholder, raising its stake from 13% to just under 30%.
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Eutelsat is a leading European satellite operator that provides satellite communication services to broadcasters, internet service providers, governments, and businesses across the globe. Headquartered in Paris, France, Eutelsat operates a fleet of satellites positioned in geostationary orbit, covering Europe, the Middle East, Africa, Asia, and the Americas. Founded in 1977, the company plays a key role in delivering television broadcasts, broadband internet access, and data connectivity in remote and underserved regions.
Debt-laden Eutelsat has garnered unprecedented attention this year from European governments seeking alternatives to reliance on U.S. satellite companies.
Eutelsat supports major sectors including media, maritime, aviation, and government communications. It has also partnered with companies and agencies to bridge the digital divide, particularly in rural areas lacking terrestrial infrastructure. In recent years, Eutelsat has expanded into the low Earth orbit (LEO) satellite market through a merger with OneWeb, enhancing its global internet coverage. With a strong focus on innovation and digital transformation, Eutelsat continues to evolve as a critical player in global telecommunications infrastructure.
“Eutelsat is a strategic asset contributing to European strategic autonomy,” French Finance Minister Éric Lombard’s office said.
Lombard’s office also said that the war in Ukraine has shown the importance of space infrastructure for resilient communications infrastructure, whether civilian or military.
“It has also spotlighted Europe’s dependence on non-European technology,” the office continued.
France’s recent investment in Eutelsat signals a broader effort to strengthen European independence in the space and telecommunications sectors. By increasing its stake and providing significant capital support, the French government is helping position Eutelsat as a viable competitor in the fast-growing low Earth orbit (LEO) satellite market.
This move supports the development of Eutelsat’s satellite internet capabilities through its merger with OneWeb and participation in the European Union’s IRIS² satellite constellation. In general terms, this investment enhances Eutelsat’s financial stability, innovation potential, and ability to compete globally, especially in critical areas like broadband coverage in remote regions and secure communications.
For the global satellite internet market, particularly for Musk’s Starlink, this marks the arrival of a more structured and government-backed rival. Starlink, while still leading in scale and speed of deployment, will likely face increasing pressure in Europe and other regions where governments prioritize digital sovereignty and secure, domestically aligned infrastructure.
France’s investment could also encourage other countries to support similar national or regional satellite systems, leading to a more competitive and multipolar satellite internet landscape.