The European Union is moving to strengthen its satellite communications industry as governments seek alternatives to Elon Musk’s SpaceX, amid growing concerns about Europe’s dependence on American technology for critical communications and defense capabilities.
According to a Bloomberg report, the European Commission is prepared to accelerate efforts involving a potential European competitor to SpaceX.
The initiative comes as European policymakers face mounting pressure to establish greater control over communications infrastructure considered essential to national security, economic resilience and military operations.
Europe’s reliance on U.S. satellite services has become particularly sensitive following reported disruptions affecting satellite communications used by Ukraine.
Reuters reported Wednesday that Ukrainian forces had experienced problems involving SpaceX’s military-focused Starshield service, highlighting the operational risks of depending on a limited number of foreign providers. European officials have acknowledged that the continent currently lacks a readily available replacement for some American satellite capabilities.
European Satellite Industry Gains Strategic Importance
European satellite operators, including Eutelsat and SES, are increasingly viewed as important participants in the continent’s efforts to reduce its dependence on foreign communications networks.
Eutelsat operates the OneWeb satellite constellation, one of the few existing low-Earth-orbit broadband networks capable of providing an alternative source of connectivity to SpaceX’s Starlink.
Investor interest in European satellite companies has strengthened alongside concerns about the reliability of access to U.S.-controlled systems.
Eutelsat shares surged 23% on Wednesday, their largest one-day gain in 16 months, while Luxembourg-based SES rose 2.6%, according to Reuters. The gains followed reports of restrictions affecting Starlink’s military-grade services in Ukraine.
However, significant technological differences remain between the European and American systems.
Starlink operates roughly 10,000 satellites, compared with more than 600 in Eutelsat’s OneWeb network, Reuters reported. Switching between the systems would also require new terminals and supporting equipment, complicating efforts to replace existing services.
Regulatory and Industrial Challenges Remain
Any effort to develop a major European satellite competitor would face scrutiny under EU competition rules.
European Commission Executive Vice President Teresa Ribera previously warned that a proposed satellite venture would not receive special treatment from competition authorities, even if it enjoyed political support from senior EU officials.
In an interview with Bloomberg Television reported in September, Ribera emphasized that European competition law would continue to apply to the initiative.
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The issue underscores a broader challenge facing Brussels: supporting the emergence of globally competitive European technology companies while maintaining safeguards against excessive market concentration.
The EU is also advancing its IRIS² secure satellite communications program, designed to provide governments, defense organizations and emergency services with European-controlled connectivity.
According to the EU Agency for the Space Programme, an August agreement expanded the planned constellation to 348 satellites, with initial launches scheduled for 2029. The project involves the SpaceRISE consortium, which includes SES, Eutelsat and Hispasat.
EU Agency for the Space Program
The program is intended to provide secure communications independent of non-European satellite infrastructure, although full deployment remains several years away.
Security Concerns Drive Urgency
The strategic importance of satellite connectivity has increased as European governments reassess their exposure to foreign technology providers.
The war in Ukraine has demonstrated the importance of space-based communications for military coordination, drone operations and intelligence support.
European Defense Commissioner Andrius Kubilius acknowledged the continent’s substantial dependence on American space infrastructure during remarks in Brussels on Wednesday, according to Reuters. He called for the development of European capabilities, including the IRIS² network.
In the shorter term, the European Commission is working to expand access to its GOVSATCOM system, which combines existing government satellite capacity from participating countries.
The Commission confirmed Wednesday that discussions were underway to associate Ukraine with the system, while additional secure commercial capacity is expected to become available from 2027.
The combination of new satellite investments, potential industry consolidation and expanding government demand could reshape Europe’s space communications sector.
For Brussels, the challenge is translating political support for technological independence into operational systems capable of competing with established American providers.
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