Europe wants its own 'Starlink' – Lithuanian company CEO sees a big problem

Europe's ambition to create its own satellite internet system, dubbed IRIS², faces significant hurdles, according to Laurynas Mačiulis, CEO of Lithuanian laser communication systems firm Astrolight. While the EU announced the program in March 2023 with a goal of deploying 264 low-orbit and 18 medium-orbit satellites by 2027 for services to launch in 2030, Mačiulis argues that Europe's strategic thinking is flawed.

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Europe has a strategic thinking problem: we think more about how to make things good for all countries, how to distribute money fairly to all countries, but for such a player (like Starlink) to emerge, there must be a very big appetite for risk.

"Europe has a strategic thinking problem: we think more about how to make things good for all countries, how to distribute money fairly to all countries, but for such a player (like Starlink) to emerge, there must be a very big appetite for risk," Mačiulis stated. He emphasized that developing a system comparable to Elon Musk's Starlink requires substantial capital investment and a global perspective, which he believes is lacking in the current EU approach.

Mačiulis suggested that instead of a politically motivated program like IRIS², which aims to ensure state access to services, funds should be directed toward companies with the potential to become global players. He believes Europe possesses the necessary technology and talent but is hampered by a lack of access to capital and a diminished appetite for risk. "If states and the European Union contributed with their investments, supporting some company, Europe would likely have at least one or two that could do it," he mused.

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If states and the European Union contributed with their investments, supporting some company, Europe would likely have at least one or two that could do it.

The Astrolight CEO also advocates for market-driven competition rather than politically mandated solutions. He noted that political commitments often lead to cost overruns and stifle competition. "I would say that states in Europe should place orders for their needs, but allow the companies themselves to realize them," Mačiulis advised, distinguishing this from the IRIS² project's nature as a government-led initiative, unlike the privately operated Starlink.

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I would say that states in Europe should place orders for their needs, but allow the companies themselves to realize them.