The European Commission has signed a €10.6 billion contract to develop Iris², a satellite network designed to provide secure communication services and revive Europe's space sector.

The multi-orbit constellation will deploy 290 satellites in low and medium Earth orbits, with operations expected to begin in early 2030. The project aims to establish sovereign and secure communication capabilities for European governments and citizens, directly challenging Elon Musk's Starlink service.

Henna Virkkunen, executive vice-president for tech sovereignty, security and democracy, emphasised the broader significance of the project. "Iris² is not just a technological achievement—it is a testament to Europe's ambition and unity. This cutting-edge constellation will protect our critical infrastructures, connect our most remote areas and increase Europe's strategic autonomy," she said.

Timo Pesonen, the commission's director-general for defence, industry and space, further underscored the strategic importance. "Iris² underpins our strategic autonomy and defence capacity, promotes our competitiveness, and energises public and private sectors co-operation," he added.

Andrius Kubilius, commissioner for defence and space, expanded on the vision behind the project: "Today we are not just launching a satellite project. We are launching a vision - a vision of a stronger, more connected, and more resilient Europe. Iris² demonstrates the Union's resolve and commitment to strengthening Europe's space global posture both in terms of security and competitiveness to the benefit of our governments, businesses and citizens."

The funding will be split between public and private sectors, with 61 per cent coming from public sources and the remainder from the SpaceRise industrial consortium. Eutelsat is the largest private investor, committing €2 billion to the project.

Eva Berneke, chief executive of Eutelsat, highlighted the financial flexibility of the investment. "We get access, and maybe even faster access, to the technologies where the costs are being, to a very large extent, financed by public funds," she explained.

The project comes at a critical time for Europe's space industry, which has struggled to adapt to the shift from large geostationary satellites to smaller low Earth orbit constellations. Major manufacturers like Thales and Airbus have recently announced significant job cuts.

The Iris² network will offer both commercial broadband services and secure government communication capabilities, positioning Europe to compete in the rapidly evolving satellite communications market.

---