Europe's satellite strategy: Challenging Elon Musk's SpaceX

In January, Italian Prime Minister Giorgia Meloni criticized the lack of European alternatives to Starlink, highlighting Europe's delays in developing public communication technologies.

Her remarks came in the context of Bloomberg's report on a potential agreement between the Italian government and Starlink to provide secure telecommunication services for the government and public administration.

The negotiated agreement would be valued at approximately $2.2 billion CAD and include providing Italy with "a full range of top-tier encryption solutions for phone and internet services used by the government," Bloomberg reported.

The plan also includes providing communication services for the Italian military in the Mediterranean region and launching satellite services directly connecting to cell phones in Italy, to be used in crisis situations such as terrorist attacks or natural disasters, Italian authorities reported in January.

On Monday, March 10, the weekly magazine "Variety" described in an article how Elon Musk is still, despite opposition from various parties, attempting to sign a deal with Italy. His recent actions suggest he wants to meet President Sergio Mattarella, who—as the magazine noted—is "considered one of the people who strongly supports considering other satellite service providers, such as the French-British rival to Starlink, OneWeb."

In January, the Italian Prime Minister questioned why Italy and Europe had not developed secure public communication technologies promptly, as reported by Politico. The publication noted that this concern appears relevant, especially in light of U.S. President Donald Trump’s unpredictable foreign policy. It cited a recent incident in which a U.S. satellite company allegedly restricted Ukraine’s access to imagery following an "administrative request."

In an article published on March 10, Politico wrote that three European companies – Airbus, Leonardo, and Thales Alenia Space – in response to, among others, Musk's actions plan to create a joint venture. Its goal would be to increase the production of satellites, particularly for telecommunications in low Earth orbit, allowing competition with the telecommunications giant Starlink and the space company SpaceX, which belong to Musk.

Aleksandra Wójtowicz, an analyst at PISM, emphasized that European countries should prioritize investments in their own technologies, particularly in communication, to enhance their security. This approach would guarantee that data processing complies with EU regulations and reduce the risk of losing access to essential communication channels during a crisis.

Politico reports that Italy owns 30% of shares in Leonardo, which holds a 33% stake in Thales Alenia Space. While Paris favours the project, Germany may oppose it due to concerns over French and Italian dominance in the space sector. The portal also highlighted that Chancellor Olaf Scholz recently resisted another merger that sought to establish a pan-European giant, involving the Italian bank UniCredit and Germany’s Commerzbank.

Paweł Fleisher, Vice President of the Association of Polish Space Sector Professionals, explained that the collaboration between Airbus, Leonardo, and Thales Alenia Space stems from the necessity to consolidate expertise within the space industry and strengthen their position in competing for state-level space projects and programs.

He emphasized that this initiative responds to increasing competition from the United States and China. Additionally, he pointed out that previous European projects in this field, such as IRIS, are now outdated and no longer meet modern requirements.

According to Politico, the head of the European Commission, Ursula von der Leyen, supports projects to consolidate European aviation giants. However, creating a joint entity between Airbus, Leonardo, and Thales Alenia Space called "Project Bromo" would require broader EU approval, as its competition rules limit market monopolization.