Eutelsat Secures Major Satellite Order to Challenge Starlink Dominance

Eutelsat FR0010221234

In a significant move within the satellite broadband arena, Eutelsat has placed a substantial new order with Airbus for 340 satellites destined for its OneWeb constellation. This strategic procurement is viewed as a critical step for Europe in its effort to establish a competitive alternative to US-based services like Starlink. Investor reaction was positive, with the company's shares advancing to 2.06 euros on the news.

The agreement represents a major expansion of Eutelsat's satellite fleet. When combined with a prior order for 100 units placed in December 2024, the total commitment now stands at 440 satellites. To support this ambitious project, Airbus will establish a new assembly line at its facility in Toulouse, with the initial deliveries scheduled to commence by the end of 2026.

Financially, the company has outlined an investment plan totaling approximately 2.0 billion euros, to be allocated between 2024 and 2029. Industry observers note that the targeted delivery schedule, while aggressive, is considered achievable. Any potential delays, however, would directly impact cost structures—a key risk factor that market analysts are monitoring closely.

Technological Advancements and Market Goals

The newly ordered satellites constitute a second-generation fleet designed to gradually replace the initial OneWeb constellation. Key technological upgrades include enhanced digital channelizers and more powerful onboard processors. These improvements aim to deliver greater network capacity and more flexible bandwidth management.

Eutelsat's objectives extend beyond improving service quality for telecommunications and maritime clients. The upgraded infrastructure is also intended to create dedicated, additional capacity for secure government communications, addressing a growing demand in this sector.

A Matter of European Sovereignty

The initiative carries substantial geopolitical weight, supported by national interests in digital autonomy. Both France and the United Kingdom regard an independent Low Earth Orbit (LEO) infrastructure as a cornerstone of strategic sovereignty. This perspective was underscored in June 2025 when the French government participated in a 1.35 billion euro capital increase for Eutelsat, contributing 717 million euros. This financial backing is widely interpreted as a clear signal to Washington and Elon Musk's Starlink operation regarding Europe's determination to build its own capabilities.

As some competitors remain occupied with funding rounds or conceptual studies, Eutelsat is moving decisively into the industrial scaling phase. This head start could prove decisive in capturing meaningful market share across Europe and other regions.

Execution is Key

Attention now shifts to implementation. The first milestone—successful satellite deliveries starting in late 2026—is critical. If Airbus meets its production targets, confidence in Eutelsat's broader roadmap is likely to strengthen. Concurrently, the company must demonstrate it can successfully commercialize the new network capacity; otherwise, the costly infrastructure risks becoming a financial burden.

With the satellite production now secured, the primary technological hurdle has been addressed. Eutelsat's share price has recently stabilized around the 2.06 euro level, which it must now maintain. The coming quarters will reveal whether this substantial infrastructure investment can be translated into sustainable revenue streams.