French Government Becomes Largest Eutelsat Shareholder, Bolstering European Space Sovereignty

A Pivotal Shift in Eutelsat's Ownership

The French government has solidified its position as the largest shareholder in satellite operator Eutelsat, increasing its stake to just under 30%. This strategic move, announced in June 2025 and further detailed in December 2025, is part of a broader €1.35 billion capital raise designed to reinforce Eutelsat's financial standing and accelerate the development of its OneWeb LEO broadband constellation. The French state's direct investment amounts to approximately €717 million. The shares previously held by Bpifrance Participations have been transferred to the Agence des participations de l'État (APE), consolidating the government's influence.

Driving European Digital Sovereignty

This significant investment underscores France's commitment to strengthening European digital sovereignty and reducing reliance on foreign satellite technologies. French officials have explicitly positioned Eutelsat, particularly its OneWeb capabilities, as a crucial European alternative to services like Elon Musk's Starlink. President Emmanuel Macron's office stated, 'The race is on. That's why we have to take a position now and invest now. Otherwise, the whole market will be occupied and France and Europe will depend on other powers in future'. The investment aims to fund the renewal of Eutelsat's satellite fleet, improve its financial health, and support its contribution to the IRIS² program, a multi-orbit constellation for secure communication services across the EU.

Strengthening the OneWeb LEO Constellation

The French government's decision is closely tied to the future of the OneWeb LEO broadband constellation. Eutelsat completed its merger with OneWeb in September 2023, forming the Eutelsat Group, which now operates a combined fleet of 35 geostationary (GEO) satellites and over 600 Low Earth Orbit (LEO) satellites. This integration positions Eutelsat as a global leader uniquely capable of offering comprehensive connectivity solutions. The capital injection will support the expansion and upgrade of OneWeb's infrastructure, ensuring continuous low-latency coverage and enhancing its capabilities to provide high-speed internet to remote and underserved areas worldwide.

Military Applications and Future Outlook

Beyond commercial broadband, the investment has significant military implications. Eutelsat recently secured a 10-year contract worth up to €1 billion with the French Defense Procurement Agency (DGA) for defense communications services. This agreement grants the French military priority access to the OneWeb constellation and includes funding for upgrading the network to military standards. This highlights Eutelsat's strategic role in providing critical services for military communications, cyber resilience, and secure government connectivity. The French government's increased stake is seen as a pivotal step towards ensuring Europe's strategic autonomy in space, a domain increasingly vital for both civilian and military operations in a complex geopolitical landscape.