Italy’s military negotiating with SpaceX to use its Starlink constellation for communications

In what would be a five year deal costing $1.56 billion, Italy’s military is presently negotiating with SpaceX to use its Starlink constellation for communications, rather than wait for the European Space Agency’s (ESA) IRIS2 constellation, which is years from launch and likely to experience delays, as do all of ESA’s projects.

By negotiating a five-year deal with SpaceX, Italy may be aiming to bridge the gap until Europe’s IRIS2 system becomes operational. With the ongoing war in Eastern Europe, the country’s Armed Forces likely view secure military communications as an urgent priority. However, critics may argue that the €1.5 billion price tag represents 14.15% of the total IRIS2 budget for just five years of service. For context, Italy is the third-largest contributor to the European Union, with its €18.6 billion contribution in 2023 accounting for roughly 10% of the EU’s total budget.

This story illustrates the good business sense of Elon Musk. He moved to get Starlink in orbit ahead of anyone else, and now is reaping the cash awards because he can provide services while others cannot.

Europe to spend $11 billion to build its own Starlink government constellation

The European Union has now finalized its $11 billion plan to build a government-owned 290 satellite constellation, dubbed IRIS2, to compete with Starlink and the many other private constellations already launching.

On 16 December, ESA, the European Commission, and the SpaceRIDE consortium, led by European satellite operators SES, Eutelsat, and Hispasat, signed a €10.55 billion, 12-year concession contract to develop the IRIS2 constellation.

…Under the contract terms, the EU will contribute €6 billion, the consortium €4 billion, and ESA €550 million toward the total value. In addition to the consortium’s three leads, the key partners include Thales Alenia Space, OHB, Airbus Defence and Space, Telespazio, Deutsche Telekom, Orange, Hisdesat, and Thales SIX.

As is usual for government projects, and especially for European ones, the time table for construction and launch is as slow as molasses. The first satellite won’t be launched until 2029, with the service not available until 2030. By that time there will be multiple such constellations in orbit, not just Starlink, offering services at rates far less than this system will likely offer.

This project is really nothing more than crony capitalism, creating a project to funnel government money to all these big European corporations. Fortunately, the project does demand they commit some of their own funds, which will at least act to keep them relatively honest.

Europe however would be better off leaving this to the companies entirely. If both SpaceX, OneWeb, and Amazon can build their internet constellations without government funds, why can’t these big European companies?

European Commission finally awards contract to build its government Starlink-type constellation

The European Commission yesterday finally awarded a gigantic contract to a consortium of European satellite companises to build its government-conceived and government-designed communications constellation designed to duplicate constellations already in orbit and built by Starlink and OneWeb.

The full constellation, dubbed IRIS2 and first proposed in 2022, is expected to have 290 satellites. The consortium, dubbed SpaceRISE, is led by satellite companies SES, Eutelsat, and Hispasat, and also includes Thales Alenia Space, OHB, Airbus Defence and Space, Telespazio, Deutsche Telekom, Orange, Hisdesat, and Thales SIX.

In other words, practically every major European aerospace company gets a piece of the pie.

According to a 31 October press release, the European Commission aims to have the IRIS2 service up and running by 2030. The project was initially expected to cost approximately €6 billion, of which the European Commission would provide 60%, with the rest being covered by private industry. However, recent reports have indicated that the project’s budget will likely reach as much as €10 billion.

Based on these numbers, it is going to take more than six years to launch, with each satellite costing about 3.5 million euros.

This is a very typical European government project, conceived not to fill a real need but to make sure there is a European version of something for Europe to use. It is also conceived as a way to transfer cash to as many European aerospace contractors as possible. Considering the number of companies involved and the fact that the whole constellation is government designed, expect the budget to well exceed ten billion euros before completion, and take far longer to become operational than presently planned. For example, the project was first proposed more than two years ago and only now has the contract been issued. In that time SpaceX conceived and has practically launched its entire direct-to-cell Starlink constellation of about the same number of satellites.

The EU’s government-owned satellite constellation is faltering in its attempt to compete with Starlink and OneWeb

In a pattern that should surprise no one, the government-owned internet satellite constellation proposed by the European Union to compete with private constellations such as Starlink and OneWeb is now in trouble and faces significant delays, partly because its budget has already doubled, even before anything has been built, and partly because there is friction between the various European countries tasked with building it.

A new report in a German publication, Handelsblatt, provides information on some likely causes of the delay. The report indicates that the cost estimate for the Interconnectivity and Security by Satellite (IRIS²) constellation has doubled from an initial estimate of 6 billion euros to 12 billion. Additionally, the project is exposing long-running fault lines between Germany and France when it comes to European space policy.

…Germany, which alongside France is likely to be the main financial backer of IRIS², is not happy that most of the prime contractors are based in France or linked to the nation. … And finally, it appears the operations for the constellation will be based primarily in Italy.

In other words, this government project is not being run to make a profit, but to distribute contracts to various countries in the European Union. Under these conditions, it is guaranteed to fall behind scheduled, cost a fortune, ald lose gigantic amounts of money.

These European countries are already shifting away from this failed model, abandoning its government-run rocket company Arianespace to instead encourage competing private rocket companies. It is therefore no surprise that many member countries in the EU are now having second thoughts about building this government-run satellite constellation.

Nonetheless, EU officials want Europe to have its own internet satellite constellation. Getting it however is problematic. There presently are no continent-based companies capable of building and launching it. And a government built and owned constellation is guaranteed to fail in any attempt to compete on the open market.