👀 Copy Legendary Investors' Portfolios in One ClickCopy For Free

EU commits €10.6 billion to rival Starlink with IRIS2 satellite network

Published 2024-12-16, 07:00 a/m
© Shutterstock
EUR/USD
-

On Monday, the European Union embarked on a significant space endeavor, committing €10.6 billion ($11.13 billion) to develop a constellation of satellites named IRIS2. This network, comprising 290 satellites, is designed to provide encrypted global internet connectivity, positioning itself as a European alternative to Elon Musk's Starlink service.

The EU's decision to invest in its own satellite infrastructure comes as a strategic move to reduce reliance on third-party services, particularly as militaries worldwide have shown increasing interest in the capabilities offered by Starlink. The goal is for IRIS2 to serve not only European governments and militaries but also private customers, with full operational capability expected by 2030.

Three European companies have been contracted to build the constellation: SES SA of Luxembourg, Eutelsat SA of France, and Hispasat SA of Spain. The project will be financed through a public-private partnership, with the EU contributing €6 billion, the companies together adding €4.1 billion, and the European Space Agency providing €550 million. This 12-year contract is subject to approval by EU member states, and part of the EU's investment is conditional on this consent.

The initiative is seen as a crucial development for the EU's security and defense sectors. Andrius Kubilius, the bloc's new defense and space commissioner, underscored the importance of the project, stating, "In times of war, we can't afford to lose connectivity." He also emphasized the urgency of the project in light of threats, including Russia's jamming of navigation signals, highlighting the need for Europe to maintain its own robust and secure communication systems.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.