Eutelsat Secures Major Satellite Order to Challenge Starlink Dominance

French satellite operator Eutelsat has placed the largest order in the history of its Low Earth Orbit (LEO) division, marking a significant strategic move. The company has commissioned 440 new satellites for its OneWeb network, with deliveries scheduled to commence from late 2026. This substantial investment is widely seen as a direct challenge to SpaceX and its market-leading Starlink constellation. Concurrently, the company's shares are attracting attention due to geopolitical developments, including France's consideration of deploying Eutelsat terminals in Iran.

The cornerstone of this strategy is a firm order for 340 additional LEO satellites with Airbus Defence and Space. This brings the total confirmed order volume to 440 units, which includes a previous commitment made in December. Production will be centered in Toulouse, with the rollout beginning in late 2026. The new generation of satellites will feature technical upgrades designed to deliver more efficient onboard processing capabilities.

This decisive contract ends speculation about the technological roadmap for the OneWeb constellation. Eutelsat is sending a clear signal of its ambition not merely to participate in the global broadband connectivity race but to close the gap with its rivals. The satellites will serve a dual purpose: replacing aging units and enhancing competitive positioning against Starlink through improved technology. OneWeb is currently regarded as the only fully operational LEO constellation besides SpaceX—a status Eutelsat is evidently determined to defend.

However, this ambitious step comes at a cost. The massive capital expenditures will pressure the company's balance sheet in the near term. Investors are left to weigh whether the potential for long-term market positioning justifies the significant near-term CAPEX.

Should investors sell immediately? Or is it worth buying Eutelsat?

Geopolitical Factors Influencing Market Perception

Beyond industrial expansion, Eutelsat is gaining increased political relevance. French Foreign Minister Jean-Noël Barrot confirmed to parliament that France is examining the use of Eutelsat terminals in Iran. This evaluation is a response to widespread internet blackouts in the region.

Furthermore, the company is demonstrating its military applicability. The Indian Navy is utilizing OneWeb connectivity for its INSV Kaundinya expedition. Such high-profile references have the potential to lead to further government and defense contracts, opening additional revenue streams.

Share Price Activity Reflects Conflicting Signals

Eutelsat's share price is currently consolidating within a range of €2.18 to €2.28. This follows a recent rally and represents a period of technical correction. The market is digesting two opposing narratives: the burden of high investment costs on one side, and the assurance of a secured technological future on the other.

With the Airbus order now finalized, a major source of uncertainty has been removed. The operational continuity of the OneWeb network for the coming years rests on a more solid foundation. The focus now shifts to Eutelsat's execution, as it must prove that its second-generation satellite fleet can deliver the anticipated competitive advantages.