European Governments Back Eutelsat OneWeb in Push for Satellite Sovereignty

Earlier this month, the UK government invested in European satellite company Eutelsat. The announcement came a few weeks after the French government also invested in the company. This combined funding totalled over €800 million from two permanent members of the United Nations Security Council, highlighting a determination to strengthen European satellite sovereignty, improve the resiliency of European networks and reduce the continent’s reliance on SpaceX Starlink, particularly for military uses.

Since MWC 2025, the geopolitical relationship between Europe and the US has become increasingly strained, largely because of the current US administration’s instability and unpredictability. European policymakers have felt that their reliance on the US leaves them vulnerable, so they’ve intensified efforts to strengthen the continent’s strategic autonomy in critical sectors, one of which is satellite technology. As the US and cutting-edge companies like Starlink dominate the area, the vital question is how Europe can take control of its satellite future.

French satellite company Eutelsat is part of the solution. The company has historically used geostationary satellites but faced growing financial difficulties because of the decline in satellite broadcasting. So, in 2023, Eutelsat acquired British company OneWeb. This deal was crucial: OneWeb has a fully deployed and operational global low-Earth-orbit (LEO) constellation of about 650 satellites that could offer high-speed internet as an alternative to Starlink.

At the time, many investors questioned the move because of OneWeb’s precarious financial situation — the firm was close to bankruptcy in 2020 and was partly saved by the UK government — and the need for investment to replace its ageing satellite technology and infrastructure. However, its potential as a distinct, European-based satellite service offering low-latency connectivity solutions from space has given Eutelsat OneWeb greater impetus amid an uncertain geopolitical climate.

In late June 2025, the French government invested over €700 million in Eutelsat OneWeb, raising its stake to just under 30%. It also signed a contract with Eutelsat to provide connectivity to the military for the next 10 years.

A couple of weeks later, the UK government invested €163 million in the constellation. The investment is just under one-fifth of the value of the French deal, but it means the UK government retains its 10.89% share, which it has held since Eutelsat bought OneWeb.

This investment highlights the importance the UK government is putting on satellite technology and sovereignty. Despite budgetary constraints, it remains committed to investing in the sector as a critical component of national infrastructure and strategy.

Crucially, the investment allows Eutelsat OneWeb to raise funds to build second-generation LEO satellites and upgrade its infrastructure. The current crop of OneWeb’s LEO satellites is slowly coming to the end of its life after five to seven years of service. Their replacement will be crucial in maintaining a constellation that offers continuous low-latency coverage and represents an opportunity to improve the satellites’ capabilities.

The OneWeb constellation offers European governments certainty in an unpredictable global geopolitical environment, but the Starlink constellation has greater capacity on its network. Its satellites are more advanced thanks to use of the regenerative satellite approach and have lighter, more user-friendly terminals, which is a crucial advantage in military scenarios. By investing in new satellites, the OneWeb constellation will compete more closely with Starlink’s capabilities.

Eutelsat OneWeb isn’t the only satellite operator based in Europe; operators such as Hispasat and SES will also play a role in securing the continent’s satellite sovereignty. Along with Eutelsat OneWeb, these firms are part of IRIS², the EU-backed constellation to supply the continent with connectivity, security and strategic autonomy.

Eutelsat OneWeb is arguably still the most important member, holding the key to low-latency communications needed for most military applications as it operates in the LEO space about 1,200 km above the Earth. SES is strengthening its proposition, having successfully acquired US satellite company Intelsat and its constellation. It has also recently invested in Lynk, a LEO direct-to-device satellite operator. These moves provide a diverse multi-orbit portfolio that could offer connectivity solutions to reduce Europe’s reliance on the US.

The French and UK governments’ investments are vital for Eutelsat OneWeb and will support Europe’s desire to become more independent. However, as I explored in our recent webinar, the roll-out of new constellations can be a lengthy process. For example, IRIS² isn’t due to be operational until 2030.

Constellation design, navigating regulatory frameworks and building and launching satellites are complex undertakings, made harder by the growing number of companies attempting to build constellations, putting a strain on the supply of materials and highly skilled workers. As costs continue to rise and European governments increasingly prioritize satellite sovereignty, we expect more strategic investments to follow.