The estimated 10 billion-plus euro cost of the IRIS² program is nearly double initial projections. European officials also confirmed the sovereign satellite network won’t begin providing services to European government customers until 2030, three years later than the commission’s previous schedule.
Rising costs and negotiations over how much governments and industry will pay for IRIS² have delayed the contract award for months. Earlier this year, press reports indicated the SpaceRISE consortium’s proposal for IRIS² carried a total cost of 12 billion euros. It seems the price has been negotiated down, at least by a small percentage, to around 10 billion.
It’s also worth noting that the EU will this year only commit to funding the IRIS² initiative through the end 0f 2027, when the commission’s seven-year budget framework expires. It’s almost certain the IRIS² program will require more government funding beyond 2027, but the European Commission said it will decide later on additional money, subject to the “availability of the corresponding appropriations.”
In April, a senior official in the German government, the EU’s top contributor, called for the IRIS² program to be restarted. Robert Habeck, Germany’s economy minister, called the proposed 12 billion euro price “exorbitant” and said the entire project was “ill-conceived” in a letter to Thierry Breton, then the EU’s internal market commissioner, according to a report in the Germany newspaper Handelsblatt.
Habeck’s protest obviously did not stop the European Commission from awarding the contract to the SpaceRISE consortium. The 12-year agreement will cover the development, deployment, and operation of at least 290 satellites placed at different orbital altitudes, from low-Earth orbit up to medium-Earth orbit several thousand miles above the planet.
At these higher altitudes, IRIS² can cover the globe with fewer satellites than Starlink, OneWeb, or Amazon Kuiper.
The commission’s press release said the agreement, the largest space contract in EU history, should be signed in December. At that time, “legal and financial commitment from both parties will be taken,” the commission said.
The SpaceRISE consortium includes numerous European satellite and telecom companies, including spacecraft manufacturers Airbus Defence and Space, Thales Alenia Space, and OHB. Telespazio, Deutsche Telekom, Orange, Hisdesat, and Thales SIX are also part of the industry group.
These companies are typically competitors in the satellite and telecom markets, as are SES, Eutelsat, and Hispasat, which head up the consortium. Getting all the contractors and subcontractors to play nice with one another will be no small feat.