Eutelsat reportedly has conducted talks with investors to raise €1.5 billion ($1.7 billion) to expand its low earth orbit (LEO) satellite constellation.
Bloomberg explained the satellite operator is in discussions with the French government, investor Fonds Strategique de Participations, shipping company CMA CGM and the UK government for the fresh funds.
The news agency noted the French government’s current 13.6 per cent stake in Eutelsat could increase to 30 per cent if the funding goes through.
Eutelsat is attempting to better compete against Elon Musk-owned Starlink to provide satellite-based broadband across Europe.
The news agency’s unnamed source stated Eutelsat has attempted to secure funding for close to a year.
It stated Eutelsat needs capital to replace its LEO birds every five to seven years. The company will also need more than €2 billion to take part in the European Commission and European Space Agency’s proposed IRIS2 constellation.
Bloomberg stated European officials are concerned about beefing up military defences following an acrimonious meeting between US President Donald Trump and Ukrainian President Volodymyr Zelenskiy in February.
Trump later paused military assistance to Ukraine while Bloomberg noted there is concern Starlink will cut off its service in the area.