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EU’s IRIS² Awards Major Satellite and Payload Contracts to Aerospacelab and Thales Alenia Space

The deals push forward a Europe-owned low Earth orbit network meant to give governments secure communications and space-based 5G while exposing the programme to cost and fragmentation risks from national projects.

The logo of European satellite operator Eutelsat is displayed at the company’s headquarters in Issy-les-Moulineaux, near Paris, France, March 30, 2026. REUTERS/Gonzalo Fuentes

Overview

  • On Thursday, Sept. 10, two contract milestones were disclosed that materially advance the IRIS² rollout and clarify who will build and equip much of the constellation.
  • Belgium’s Aerospacelab won a €2.4 billion contract to design, manufacture and deliver 264 satellites for the Eutelsat-led SpaceRISE concession, representing about 76% of the planned 348-satellite fleet.
  • Thales Alenia Space secured a roughly €500 million tranche to supply government payloads for 330 Eutelsat satellites, with those payloads designed for in-orbit traffic routing, active interference management and secure end-to-end links.
  • The programme schedule remains unchanged, with the first 66 satellites due for launch starting in 2029 and services targeted around 2030 under the EU concession model managed by SpaceRISE.
  • The contracts strengthen a Europe-based alternative to non-European systems but could face higher aggregate costs and capability fragmentation because Germany is pursuing its own national military satellite initiative.