Starlink restricted in Ukraine

The Starlink satellite internet service has faced restrictions in Ukraine, which has led to increased efforts by European countries to develop their own satellite capabilities.

Europe seeks satellite independence

In response to the limitations on Starlink, Europe is accelerating the creation of its own satellite network through a merger of Airbus, Thales, and Leonardo. This project, called Bromo, aims to reduce reliance on American satellite systems like those operated by SpaceX.

Bromo's goals and backing

Named after an Indonesian volcano, the Bromo project is seen as a direct response to SpaceX’s dominance in the satellite sector. European Commission President Ursula von der Leyen has expressed confidence in the project’s potential to reach the level of the world’s best technologies.

Regulatory steps ahead

The merged entity, which has not yet applied for regulatory approval, is expected to submit its application soon. Discussions are ongoing to address potential issues related to the merger and the possible monopoly it may create. Competition Commissioner Teresa Ribera has stated that the project will not receive special treatment during the regulatory review.

Financial and strategic goals

The Bromo project aims to generate synergies among the three companies, which have individually struggled with losses. The goal is to achieve profitability within five years by combining their expertise in telecommunications satellites, Earth observation, and space systems.

Challenges in satellite manufacturing

The new entity will need to produce satellites in series, faster and at lower cost, as the market shifts toward large constellations of spacecraft in low orbit. Preparations for the new company are well advanced, with its formation expected in the first half of 2027, pending regulatory approvals.

Early satellite development underway

In September, Airbus and Thales Alenia Space began work on a first batch of at least 66 satellites in low orbit, with delivery scheduled for 2029. Airbus will manufacture the platforms and assemble the satellites in Toulouse, while Thales Alenia Space will provide the payloads.

European reliance on Starlink

Currently, more than half of the operational satellites in orbit belong to SpaceX and Starlink, raising concerns about European independence in this field. This dependence has become concrete in Ukraine, where restrictions on Starlink use for certain military operations have sparked renewed concerns about reliance on a private American company.

Investor reactions and existing capabilities

Eutelsat, a French satellite operator, saw its stock rise sharply before losing value, as investors bet on increased use of European satellite solutions. Unlike Bromo, Eutelsat already operates its own low-orbit constellation, OneWeb, with over 600 satellites.

Europe's broader ambitions

Europe aims to build an industry capable of reducing its dependence on the United States, though it will need to make massive investments to compete with SpaceX. Unions and suppliers remain opposed to the project, fearing job losses and reduced orders due to potential monopolistic practices.