In the defense sector, satellites play an important role. For a long time in difficulty, Eutelsat benefits from an unexpected rebound. This starlink competitor greatly interests Europe.
The Satellites of Eutelsat, future of European defense
May 5, 2025 marked a turning point for Eutelsat. The French operator of communication satellites, long considered dying, is now at the heart of the European Union’s defense strategy. The appointment of the former director of Orange France, Jean-François Fallacher, to the general management is part of a critical financial context, while the company is preparing to play a central role in the sovereign program Iris².
Who would have bet on Eutelsat after the 2023 fiasco? The acquisition of OneWeb, British constellation of 650 satellites in low orbit, had emptied the boxes while propeling the operator in a standoff with the Ogre Starlink of Elon Musk. Result ? A debt of 2.7 billion euros at the end of 2024 and a descent into hell on the stock market.
And yet, this same constellation today makes Eutelsat the only European actor capable of competing, timidly, with Starlink in the field of internet connection by satellite. Oneweb becomes a centerpiece for the Union, which desperately seeks to reduce its dependence on foreign infrastructure in the context of hybrid conflicts, As in Ukraine, where 40,000 terminals must be delivered to the army.
-Jean-François Fallacher at the controls: Leave or double at 4 billion for Eutelsat
On June 1, 2025, Jean-François Fallacher, transfer from Orange France, will take the reins of a company in unstable balance. His mission? Bring together 4.2 billion euros. Just that. Two billion to modernize Oneweb, whose satellites are technologically exceeded by those of SpaceX, and as much to finance the share of Eutelsat in the Iris² project.
The plan is clear, but perilous: 100 additional satellites have already been ordered from Airbus, with a delivery scheduled for 2026, but it will take 340 more to build a competitive constellation. The Fitch agency is not mistaken, lowering Eutelsat’s note in March 2025, pointing to a “low visibility on future availability of funding“And a”increasingly competitive environment ».
Faced with this observation, Eutelsat tried to sell its family jewelry: at the end of 2024, the sale of its land infrastructure in EQT for 500 million euros offers a stay, but does not fill the financial chasm.
