TAMPA, Fla. — Eutelsat shares closed up nearly 13% May 5 after the French operator said it would replace its CEO with Jean-François Fallacher, a telecoms veteran joining from a key partner in Europe’s planned sovereign broadband constellation.
Fallacher, currently head of French telecoms giant Orange’s domestic operations, will succeed Eva Berneke June 1 at a pivotal moment for the multi-orbit IRIS² project, Europe’s answer to SpaceX’s U.S.-based Starlink broadband network in low Earth orbit (LEO).
A feasibility checkpoint for the IRIS² public-private partnership is scheduled for late this year after an industrial consortium co-led by Eutelsat — with European operators SES and Hispasat — agreed in December to help fund its estimated $11 billion cost.
Orange is among a core team of European subcontractors tasked with supporting more than 290 IRIS² satellites slated to enter service by early 2031, including 264 LEO spacecraft.
Eutelsat has committed about 2 billion euros ($2.3 billion) toward the project, with the bulk of this investment required in later project stages.
The operator also expects to invest up to 2.2 billion euros to deploy 440 LEO satellites needed to sustain its OneWeb constellation in the interim.
In December, Eutelsat ordered the first batch of 100 follow-on OneWeb satellites as it continues discussions with export credit agencies to finance the replenishment.
Eutelsat’s sizable capital needs, ongoing declines in its geostationary broadcast business and slow progress in launching global OneWeb services have pressured its shares in recent years.
However, the stock spiked in early March after confirmation of talks to provide Ukraine with additional satellite communications, amid uncertainty surrounding Starlink’s future role in supporting the country during Russia’s ongoing invasion, helping shares recover from all-time lows earlier this year.
“I am excited to be joining Eutelsat at such a pivotal moment in its history,” Fallacher said in a brief statement.
“Technology is evolving faster than ever, and in today’s increasingly complex geopolitical context, satellite networks have become a key element in the Connectivity landscape.”
Ongoing transformation
Berneke took the helm at Eutelsat in 2022 and oversaw the acquisition of OneWeb the following year, adding LEO capabilities to its geostationary fleet to fuel expansion into connectivity services.
However, ground station delays have pushed back the global rollout of LEO services, which were originally planned for 2024 after OneWeb completed its initial 633-satellite deployment, including spares.
Eutelsat is expected to provide updates on its ground infrastructure rollout during its next quarterly earnings announcement May 15.
OneWeb remains the only meaningful LEO broadband competitor to Starlink, Berneke noted in a May 5 LinkedIn post, highlighting growing demand in Europe for sovereign broadband capabilities to reduce reliance on foreign networks amid shifting geopolitical pressures.
“Eutelsat is set for a full alignment with a world where Europe is a strong sovereign space player and strongly aligned with the telecom connectivity ecosystem,” she said.
The company also faces growing competition in Europe as Luxembourg-based multi-orbit operator SES closes in on its acquisition of U.S. rival Intelsat, aimed at bolstering connectivity capabilities as its media business also loses ground to online streaming services.
Eutelsat’s shares jumped 13% to close at 4.5 euros on the Paris stock exchange May 5, up 98% since the start of the year but still below its early March high of 7.84 euros.
