France has made a major investment in Eutelsat, a European satellite company. The French government will now become the largest shareholder in Eutelsat after putting in 717 million euros.
France Takes a Bold Step in Space Race
This amount is part of a bigger deal worth 1.35 billion euros, which includes money from other investors too.
Before this investment, the French government owned about 13% of Eutelsat. Now, its stake has increased to just under 30%. This means France will have more say in how Eutelsat is run. The French financial ministry said this move is very important. They believe it will help Europe keep up with strong competition from big companies like Starlink, which is owned by Elon Musk.
In recent times, Eutelsat has received more attention from European governments. They are looking for other options besides American companies like Starlink. This is especially important now because space is becoming a key part of communication—both for everyday use and military purposes.
A spokesperson from French President Emmanuel Macron’s office said, “The race is on. That’s why we have to invest now. If we wait, others will take over the whole market, and Europe will have to depend on them.”
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Eutelsat: Europe’s Answer to Starlink
Eutelsat became even bigger in 2023 when it merged with a British company called OneWeb. This made it the second-largest operator of low Earth orbit (LEO) satellites in the world, right after Starlink. While Starlink has around 6,000 satellites, Eutelsat now has more than 600.
Eutelsat has said many times that it is “the only LEO alternative to Starlink.” It wants to be the main option for European countries that don’t want to rely on technology from outside Europe.
Eutelsat’s rockets are not as cheap or reusable as SpaceX rockets used by Musk. Because of this, the company has faced financial stress. It is currently dealing with high debt. The French government’s new investment will help the company fix its money problems and renew its satellite fleet.
The company is also planning to be part of Iris², a European satellite project that aims to build communication systems using satellites in different orbits. These systems are planned to offer services starting in 2030.
The French finance ministry described Eutelsat as a “strategic asset.” This means it is very important for Europe’s independence in space technology.
Military Needs and Global Interest
Eutelsat’s role is not limited to civilian internet services. The war in Ukraine has shown how important satellite communication can be. In Ukraine, Elon Musk’s Starlink has helped the army stay connected. Musk even said that if Starlink stopped working, Ukraine’s front lines would collapse.
Because of this, many European governments are now searching for their own secure options. They don’t want to depend too much on companies based in the United States.
France has already signed a deal with Eutelsat to use its satellites for military communication. This deal, signed at the Paris Air Show, will last for 10 years and is worth one billion euros.
In addition to France, other major investors are also putting money into Eutelsat. These include Bharti Airtel from India, the shipping company CMA CGM, and FSP, a fund made up of seven French insurance companies. The capital increase is being carried out in two stages. In the first round, only these named investors are allowed to take part. The second round will be open to more people.
Company also said it is talking to other governments who might want to invest. One of them is the British government, which could join the funding plan later.
Eutelsat reported recently that it is in talks with several countries, both inside and outside Europe, who are interested in buying its services. This includes military and civilian users.
This major step by France highlights how space is now a key area for countries trying to protect their independence and communication systems. By becoming the biggest shareholder in Eutelsat, France is showing that it wants Europe to have its own powerful space tools, especially in a time when reliance on foreign technology is seen as risky.
