Cartel Office clears Rheinmetall, OHB for Bundeswehr satellite network

The German Federal Cartel Office has cleared the way for a new alliance in the German defense and aerospace industry. On Friday, it approved the formation of a joint venture between Rheinmetall Digital and OHB. This officially allows the consortium to act as a bidding group to take over the Bundeswehr's largest procurement order to date in the field of satellite communication.

The project focuses on expanding the military network infrastructure in space, which is intended to ensure the digital sovereignty of the German armed forces for the coming decades. The President of the Cartel Office, Andreas Mundt, justifies the decision with the complementary focus of the partners. Since Rheinmetall and OHB operate in different specialist areas, the examiners see no competitive concerns regarding a bundling of competencies. Rather, the cooperation makes it possible to submit a comprehensive offer for the complex project.

The joint venture is to act as a system integrator. OHB will be responsible for the space and ground segments, i.e., the construction of satellites and ground stations. Rheinmetall will handle the end-user terminals and integration into the troop's network.

A German Starlink for the Zeitenwende

Behind the approval is the SATCOMBw Stage 4 project. The current version 3 still relies on a few large satellites in geostationary orbit at an altitude of 36,000 kilometers. The fourth level is intended to mark a shift. The Ministry of Defense plans a network of at least one hundred satellites in low Earth orbit (LEO). This system is similar to SpaceX's commercial Starlink network and offers shorter signal transmission times and greater reliability due to the short distance to Earth. With an order value of around 8 to 10 billion euros, it is the centerpiece of a 35 billion euro budget for space technologies by 2030.

The Cartel Office's decision sharpens competition. The new alliance will compete with the aerospace group Airbus, which has so far played a dominant role in the Bundeswehr's satellite communications. Airbus was awarded the contract for geostationary Stage 3 just in the summer of 2024, which is expected to be operational by 2027. Rheinmetall and OHB are now aiming for the technological successor, which is planned to be in orbit by 2029. Through the now legally secure fusion of expertise from the Düsseldorf-based defense contractor and the Bremen-based satellite manufacturer, a powerful national player is to be created that challenges the hegemony of established corporations in orbit.

(nen)