The IRIS2 project for hundreds of satellites was confirmed December 16th with the signing of contracts worth €10.6 billion with the SpaceRISE consortium. The consortium, led by satellite operators SES, Eutelsat and Hispasat, is now contracted to build – via sub-contractors — and operate the new highly-secure fleet of satellites.
The contract covers a 12-year concession where the three key backers will invest €4.1 billion. The EU will invest €6 billion although the current EU budget only covers one-third of that sum. New cash will flow from EU budgets due between 2028 and 2035. Currently, €55 million will come from the European Space Agency.
The project’s objective is to have a space program for the EU that is highly secure and thus can be used by Europe’s national governments, military and commercial clients. The manufacturing sub-contractors will include Airbus Space and Thales-Alenia.
Andrius Kubilius, the newly appointed Commissioner for Defense and Space for the European Union, emphasised the need for Europe to have its own constellation. “We are under threat. Our communications are under threat,” he said, citing examples of undersea cables being cut and navigation signals jammed by Russia. “IRIS² will give us the ability to connect even in a hostile environment.”
Eutelsat will put in about €2 billion, SES about €1.8 billion and Hispasat around €600 million.
The build and launch schedule is “highly aggressive” admitted the consortium members.
The structure calls for 264 new satellites in 1300 km orbits, and of which two satellites would always be in view. An additional medium-Earth orbiting fleet will have 18 satellites at 8,000 kms altitude of which one would always be in view over Europe. Each satellite will use 5G equivalent software and employ laser technology to link with each other.
Eutelsat’s existing OneWeb fleet of 600 satellites will be the forerunner of improved ‘next-generation’ versions.
There will also be 10 low-orbiting satellites (at 400-750kms) and targeted at new industries and start-ups. These will be paid for by the EU.
The immediate task is to complete a one-year design review and obtain firm costings for the consortium’s sub-contractors. This critical design review is planned to wrap by 2028, with satellite deployment to start in 2029 with initial operations starting in 2030 and be in full readiness during 2031.
The SpaceRISE consortium members are very enthusiastic. Eutelsat said that “over the period of the concession, Eutelsat expects to generate revenues of €6.5 billion from EU customers as well as the global distribution of its LEO capacities to commercial customers.” Eutelsat will act as Consortium System Development Prime, the technical authority within the consortium. In this role it will leverage its unique LEO expertise and make available its priority spectrum rights in the Ku band to lead on the design of the LEO segment of the constellation, as well as co-leading on the conception of the common elements.
SES added that while it was financing 50 percent of the MEO portion, it would have access to 90 per cent of its capacity. It said that its Internal Rate of Return on the project will exceed 10 percent.
Adel Al-Saleh, CEO at SES, commented, “We are delighted to secure this important contract as the European Commission’s trusted partner for this flagship project to realize the ambition of secure, sovereign multi-orbit-based network for EU’s strategic communications autonomy. IRIS2 will bring a new level of connectivity for the EU and its citizens in a public private partnership structure which aligns all interests and derisks the development phase with upfront public investment. IRIS2 will be Europe’s network of choice with the EU and Member States being the constellation’s anchor customers.”
