The European Commission has taken a significant step forward on Monday by awarding contracts to advance the previously delayed plans for a 10.6 billion euro ($11.13 billion) secure European satellite constellation, in response to the growing presence of Elon Musk’s Starlink and other rapidly expanding internet networks. This ambitious project, known as IRIS², will consist of a multi-orbit array comprising over 280 satellites. The primary goal of IRIS² is to establish an encrypted network infrastructure that will cater to the communication needs of European Union governments and public agencies, while also paving the way for the development of innovative commercial services.
Josef Aschbacher, the director general of the 22-nation European Space Agency, emphasized the critical importance of ensuring resilient, secure, and high-speed governmental communications in today’s increasingly complex geopolitical landscape. Aschbacher highlighted that the implementation of IRIS² not only serves as a strategic move to bolster European competitiveness but also as a means to generate employment opportunities within the region. This initiative marks the European Union’s third major undertaking in the realm of space technology, following the successful establishment of the Galileo navigation system and the Copernicus Earth observation network, which plays a crucial role in monitoring climate change.
Despite facing challenges related to industrial work share distribution and cost concerns raised primarily by certain member states, most notably Germany, the European Commission has expedited its efforts in response to the rapid expansion of Elon Musk’s Starlink network. This push for the realization of IRIS² reflects Europe’s commitment to safeguarding its “digital sovereignty” amid the relentless growth of competing satellite communication systems. The project is a collaborative effort that involves the participation of three prominent satellite operators – Eutelsat, Hispasat, and SES. The proposed timeline envisages the first satellite launch scheduled for mid-2029, with a comprehensive roll-out anticipated by the conclusion of 2030.
The European satellite manufacturing sector, represented by industry giants Airbus and Thales Alenia Space, has faced considerable challenges in recent times, with concerns mounting over economic viability and project sustainability. The emergence of Starlink, spearheaded by SpaceX, has significantly altered the dynamics of the satellite market, with Musk’s venture now commanding a substantial share of satellites in orbit. Concomitantly, there has been a noticeable decline in demand for large commercial satellites, posing additional hurdles for European manufacturers.
In response to these shifting market forces, Airbus and Thales Alenia Space made the strategic decision to withdraw from the SpaceRise consortium, citing economic uncertainties stemming from ongoing losses incurred on existing projects. However, both companies have affirmed their continued involvement in the IRIS² project albeit in a revised capacity as suppliers rather than full-fledged consortium members. This strategic realignment is indicative of the industry’s collective effort to adapt to the evolving landscape and intensifying competition.
