Why it matters: After two years of negotiations with the private sector, the European Union has signed a deal to develop and operate a homegrown alternative to satellite Internet connectivity solutions like Elon Musk's Starlink and Amazon's Project Kuiper. While smaller in scale, the IRIS² constellation is expected to spark a competitive web of suppliers for space technologies in Europe.
The European Union has announced it is moving forward with an ambitious space program designed to compete with Elon Musk's Starlink initiative in providing high-speed Internet connectivity to citizens, governments, and businesses in Europe.
Dubbed IRIS² (Infrastructure for Resilience, Interconnectivity and Security by Satellite), the project is an important component of the EU's space program alongside projects like Copernicus and Galileo that cover Earth observation and navigation systems.
IRIS² was first revealed in 2022 as a public-private partnership to build a homegrown encrypted communications network, free of influence from external actors like China or Elon Musk. To that end, the bloc plans to launch nearly 300 satellites into low- and medium-Earth orbits by 2030 in a deal worth €10.6 billion (~ $11.1 billion).
Initially, the project had an estimated cost of €6 billion (~ $6.3 billion), a number that has only crept up during negotiations with the SpaceRISE consortium. Among those entrusted with the implementation of IRIS² are leading satellite operators SES, Hispasat, and Eutelsat, as well as telecom and aerospace companies like Orange, Deutsche Telekom, Airbus, Thales Alenia Space, and OHB.
As a result of the recent agreement, SpaceRISE has been given a 12-year concession contract to develop, deploy, and operate the IRIS² satellites. The EU along with the European Space Agency will cover approximately 62 percent of the total cost, with the remainder to be paid for through private investments.
The largest private contributor is French satellite operator Eutelsat, pledging no less than €2 billion (~ $2.1 billion) towards Europe's space-based network. The company hopes the IRIS² project will help fund the development of its next-generation OneWeb satellites amid ongoing financial struggles in the face of fierce competition from Starlink and Amazon's Project Kuiper.
"This cutting-edge constellation will protect our critical infrastructures, connect our most remote areas and increase Europe's strategic autonomy. By partnering with the SpaceRISE consortium, we are demonstrating the power of public-private collaboration to drive innovation and deliver tangible benefits to all Europeans," said Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy.
With China looking to launch a megaconstellation of 13,000 satellites, experts see efforts like IRIS² as an increasingly important tool against the growing influence of censorship regimes in developing countries. Some argue that building more space-based connectivity could prove useful in scenarios where ground Internet infrastructure is damaged during war.
Meanwhile, critics of the project believe it is little more than a subsidy program in disguise. After all, it's no secret that companies like Luxembourg-based SES, Spain's Hispasat, and France's Eutelsat are interested in using IRIS² as a vehicle for building their own private constellations and securing additional space contracts.
The same could be said of Thales and Airbus, both of which have had to downsize their space divisions. The two companies are even exploring a joint venture to compete with Starlink's relatively cheap low-Earth orbit satellites which have completely changed the market landscape in recent years to the detriment of traditional satellite makers.
The same could be said of Thales and Airbus, both of which have had to downsize their space divisions. The two companies are even exploring a joint venture to compete with Starlink's relatively cheap low-Earth orbit satellites, which have completely changed the market landscape in recent years to the detriment of traditional satellite makers.
Launching the IRIS² satellites is set to begin in 2029 and will require 13 missions that will use Europe's Ariane 6 heavy-lift rocket. Barring any delays, the service will be fully operational by the end of 2030.