EU commits €10.6 billion to rival Starlink with IRIS2 satellite network

On Monday, the European Union embarked on a significant space endeavor, committing €10.6 billion ($11.13 billion) to develop a constellation of satellites named IRIS2. This network, comprising 290 satellites, is designed to provide encrypted global internet connectivity, positioning itself as a European alternative to Elon Musk's Starlink service.

The EU's decision to invest in its own satellite infrastructure comes as a strategic move to reduce reliance on third-party services, particularly as militaries worldwide have shown increasing interest in the capabilities offered by Starlink. The goal is for IRIS2 to serve not only European governments and militaries but also private customers, with full operational capability expected by 2030.

Three European companies have been contracted to build the constellation: SES SA of Luxembourg, Eutelsat SA of France, and Hispasat SA of Spain. The project will be financed through a public-private partnership, with the EU contributing €6 billion, the companies together adding €4.1 billion, and the European Space Agency providing €550 million. This 12-year contract is subject to approval by EU member states, and part of the EU's investment is conditional on this consent.

The initiative is seen as a crucial development for the EU's security and defense sectors. Andrius Kubilius, the bloc's new defense and space commissioner, underscored the importance of the project, stating, "In times of war, we can't afford to lose connectivity." He also emphasized the urgency of the project in light of threats, including Russia's jamming of navigation signals, highlighting the need for Europe to maintain its own robust and secure communication systems.

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Source: Investing.com