The European Union is increasingly committed to independence from the influence of billionaire Elon Musk, whose Starlink satellite network currently dominates the low-Earth orbit (LEO) internet services sector.
Brussels took an important step on 16 December by signing contracts with a consortium of European companies to develop an alternative: the IRIS2 programme. This ambitious effort should form a solid pillar for a digital, resilient and secure Europe. The IRIS2 project was announced in November 2022 and aimed to be operational in 2024.
Although that goal was not achieved, the European Commission remains determined. The consortium, consisting of Luxembourg’s SES, France’s Eutelsat and Spain’s Hispasat, recently started preparations. SES CEO Adel Al-Saleh stressed that it is a complex project, partly due to the coordination between the different EU member states. He praised the European Commission’s determination to get the program off the ground.
Compared to Musk’s Starlink, which already has more than 6.000 satellites in space, IRIS2 is lagging behind. Starlink benefits from favorable regulations, generous financial support and large-scale contracts from the U.S. government, factors that Europe lacks. However, the delay also presents opportunities. Analysts at ING point out that Starlink is unable to keep up with demand in some markets, such as London. This creates opportunities for alternative models such as SES’s satellite services, which operate in medium-elevation orbit (MEO) and offer more capacity.
European missiles and dependency
The IRIS2 satellites will be launched by the European Ariane 6 rocket, which has been delayed several times. After a first flight in July, the next one is not scheduled until February 2025. For a recent launch on December 17 of two MEO satellites, SES therefore opted for the more reliable Falcon 9 from SpaceX, ironically owned by Elon Musk.
The European Union has earmarked €6 billion for the IRIS2 project, a significant amount, but still smaller than the support SpaceX receives from NASA, the Pentagon and other US government agencies. According to experts such as Micah Walter-Range of Caelus Partners, it is easier to do business in the US, where there is a single regulatory framework. In Europe, companies must deal with different languages, regulations and political interests, making projects like IRIS2 complex.
Still, Europe remains optimistic. Local startups, such as The Exploration Company, are working on technologies that can compete with SpaceX. The goal is not only independence from Musk's influence, but also to restore Europe's leadership in the space sector.
Apple and Globalstar
In addition to Starlink, other companies continue to innovate. Apple, in partnership with Globalstar, is expanding its satellite services. Starting next year, some Apple Watch users will be able to send text messages via Globalstar satellites. While Globalstar has been reluctant to mention Apple in public statements, the partnership shows how technology and connectivity are increasingly merging.
Competition in direct-device satellite connectivity is heating up. Starlink has a partnership with T-Mobile, while AST SpaceMobile has deals with AT&T and Verizon. But Globalstar is uniquely positioned to work directly with hardware manufacturers like Apple, which CEO Paul Jacobs says is a more attractive strategy.
space debris
Meanwhile, Japan’s Astroscale is working on innovative technologies to clean up space debris. The company announced that its Adras-J spacecraft came within 11 meters of a derelict Japanese rocket on December 15, marking a step forward in addressing a growing problem in the space sector.
While Europe and other players like Astroscale are making progress, the dominance of SpaceX and other US companies remains a tough challenge. The coming years will be crucial for the European space sector to prove that it can compete on a global stage dominated by Musk and other big players.
