The European Union (EU) has begun building its own satellite communication network to respond to the influence of the U.S. SpaceX's low-orbit satellite communication service "Starlink," according to reports from foreign media. This is interpreted as a response to the recent indication by the U.S. that it may block Starlink's communication services in Ukraine.
According to the Financial Times (FT) on the 26th (local time), the EU Executive Commission stated in its recently released defense white paper that "we must support the communication of the Ukrainian military by utilizing the services of EU-based operators."
Ukraine is receiving communication services from Starlink and relies on its satellite network for operating attack drones, essentially placing a "digital lifeline" in the hands of Elon Musk, Chief Executive Officer (CEO) of SpaceX. Musk has said, "If I turn off Starlink, the entire frontline in Ukraine will collapse."
According to the industry, Starlink is a leader in low-orbit satellite communications, deploying thousands of small satellites in low orbit to provide high-speed networks even in disaster areas and war zones, where internet connections are difficult through existing ground-based networks.
Accordingly, major European satellite communication companies, including Spain's Hispasat, Eutelsat, and SES, have submitted a list of services available for Ukraine to the EU Executive Commission.
However, experts point out that there is no single European network that can replace Starlink at this point. The EU is considering plans to integrate satellite networks from various orbits, but experts explain that performance varies by network and terminals differ, which means that performance will inevitably be lower compared to Starlink's low-orbit single network.
According to FT, Starlink has built the world's largest satellite network by launching approximately 7,000 satellites into low orbit over five years. It also increased the global distribution rate by selling terminals for $500 to $600 (about 730,000 to 880,000 won), which originally cost $2,000 (about 2.9 million won). As a result, it has secured a total of 4.5 million subscribers since launching its beta service in 2020, with airlines, shipping companies, and government entities being major clients.
European corporations attempted mergers and acquisitions (M&A) and network expansions in response, but these efforts have led to financial difficulties. Eutelsat and SES took on massive liabilities in the process of acquiring OneWeb and Intelsat, respectively.
However, neither company has achieved any notable results yet. In particular, OneWeb, acquired by Eutelsat, is seeing decreased revenue due to delays in building ground stations, and its terminals are evaluated as less competitive than Starlink's due to their high cost, large size, and complex setup.
However, both companies believe that Europe could ultimately contend with Starlink in the long term. Adel Al Saleh, CEO of SES, told FT, "It’s not possible to replace Starlink in a day, but in the long run, a multi-orbit strategy is the answer."