The CEO of Thales, one of Europe’s largest satellite manufacturers based in France, has warned about the risks of governments relying too heavily on private satellite constellations, in what appears to be a cautionary message regarding Elon Musk’s Starlink.
During a results briefing on Tuesday, Thales CEO Patrice Caine questioned Starlink’s business model, highlighting its need for constant satellite renewals and raising concerns about its profitability.
Without directly naming Starlink, Caine pointed out the risks of governments depending on external services for communication.
“Government actors need reliability, visibility, and stability,” he told reporters.
“A provider that, as we have seen at times, mixes economic rationale with political motivations is not necessarily one that would reassure certain clients.”
SpaceX, Musk’s aerospace company that operates Starlink, did not immediately respond to a request for comment.
With millions of users worldwide and more than 7,000 satellites in orbit, Starlink has been promoted as a secure internet access system, resistant to space-based attacks due to the sheer number of replaceable satellites in its network.
SpaceX claims that global demand for Starlink continues to grow. As part of its expansion, the company has built a highly automated 92,903-square-meter manufacturing facility in Texas, producing 15,000 terminals per day.
SpaceX’s competitive advantage has allowed Starlink to capture key markets, surpassing rivals like Europe’s OneWeb, thanks to its use of reusable Falcon 9 rockets, which have significantly accelerated satellite deployment.
Starlink’s security was put to the test in the early days of the Ukraine war, when it successfully resisted Russian cyberattacks that had crippled its competitor, Viasat.
In 2023, Musk revealed that he had refused a request from Ukraine to activate Starlink in the port city of Sevastopol, Crimea, to support an attack on Russia’s fleet, arguing that he did not want to be complicit in a “major” act of war.
Last month, Musk denied a Reuters report stating that U.S. negotiators had suggested restricting Kyiv’s access to Starlink as part of discussions on critical minerals.
Caine noted that most European governments have chosen to develop systems under their direct control, such as the upcoming Iris2 constellation for secure networks.
“When it comes to government communications, you don’t necessarily want to depend on an external provider, whoever that may be,” he explained.
“That’s why the vast majority of government infrastructure in Europe is state-owned or has been directly purchased.”
He added that while some countries allow private companies to invest in and operate such services, this is rare in Europe. He cited the case of the Galileo positioning system, which initially followed a similar model but did not work as expected.
Thales, which reported overall profit growth for 2024, also announced continued losses in its satellite division.
Caine stated that while Starlink does not directly compete with Thales or its main European rival Airbus, it has disrupted the market by altering the business model of commercial telecom satellite operators.
