Satellite Internet: EU Commission awards contract for IRIS2 to Spacerise
The EU Commission has decided that SES, Eutelsat, Hispasat & Co. should set up the European Starlink alternative IRIS2 with their Spacerise consortium.
(Image: m.elyoussoufi/Shutterstock.com)
The hammer has fallen: After some delay, the EU Commission has awarded the contract for the construction, deployment and operation of the planned satellite constellation for high-availability broadband Internet to the Spacerise consortium. This alliance now consists mainly of the three European satellite network operators SES, Eutelsat and Hispasat, which otherwise compete with each other. The consortium will rely on a core team of European subcontractors from all segments of the satellite and communications ecosystem to fulfill the contract. These include Thales Alenia Space, Bremen-based space company OHB, Airbus, Telespazio, Deutsche Telekom, Orange, Hisdesat and Thales Six.
Airbus was initially regarded as the leader in Spacerise, but withdrew from this role. With its proposal of 3 September, the consortium submitted an optimized best offer for the proposed "Infrastructure for Resilience, Interconnectivity and Security through Satellites" (IRIS2), the Commission explained the award. It left open whether there were any other bids. When the contract is awarded, only the concession agreement still needs to be signed, which should happen in December at the latest. This will set out in more detail "the legal and financial obligations of both parties".
Over 290 satellites planned
According to the EU Commission, the 12-year contract consists of a public-private partnership for the acquisition and operation of the planned Starlink alternative: both public and private investments are to finance the project. The system is to comprise over 290 satellites in various orbits and the associated ground segment "in order to provide government services by 2030 and at the same time enable commercial services". The Commission has not yet provided any specific funding figures, as the project will run over several budget periods and the financial resources will only be determined via the multi-year budget framework currently being negotiated.
The Commission initially estimated the financial outlay for the satellite project at around 6 billion euros. 2.4 billion euros would be available from public funds, including from the EU Space Program, Horizon Europe and other funding pots, it said in 2023. The remaining 3.6 billion euros were to be contributed by the private sector. The operating costs were not yet included. In spring, there were reports that the total IRIS2 costs had climbed to 12 billion euros. However, the German government refused to confirm this, although Economics Minister Robert Habeck (Greens) is said to have criticized the increase as "exorbitant" and called for the initiative to be restarted.
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10 billion euros in costs expected
Observers assume that IRIS2 will cost a total of 10 billion euros after the final Spacerise offer. The Commission wants to grant additional amounts from 2028. This would require the EU Parliament and the Council of Ministers to approve a follow-up program. The consortium's offer ensures that competitive subcontracts can also be awarded, particularly to small and medium-sized enterprises along the supply chain, and that innovation can be promoted through the broad participation of other players. In order to be independent of Elon Musk's Starlink, China is also pushing ahead with a similar project. With Amazon's Kuiper and OneWeb (Eutelsat), further large constellations are set to emerge.
(mma)
