Telesat Proposes Lightspeed as Interim Solution for Europe’s Connectivity Needs

Canada’s Telesat is advocating for its Lightspeed low Earth orbit (LEO) broadband constellation as a temporary solution to complement Europe’s upcoming IRIS2 network. The Lightspeed system is slated to launch in 2027, three years ahead of the projected operational date for IRIS2, which is designed to enhance connectivity across Europe.

Dan Goldberg, CEO of Telesat, made this announcement during the World Space Business Week in Paris on September 15. He emphasized the potential for collaboration between the Government of Canada and European Union nations to utilize Lightspeed before IRIS2 becomes operational. “We believe there’s a great opportunity for the Government of Canada to work with the EU and its allied governments in Europe,” Goldberg stated.

IRIS2, which stands for Infrastructure for Resilience, Interconnectivity and Security by Satellite, is a public-private partnership led by European operators SES, Eutelsat, and Hispasat. This ambitious initiative aims to deploy over 290 satellites, primarily in LEO, with a budget of approximately $11 billion. Yet, the project has faced skepticism regarding its financial viability and effectiveness, particularly in light of escalating demand for satellite broadband driven by the success of Starlink and emerging Chinese broadband systems.

Goldberg highlighted the impact of Starlink in recent conflicts, specifically mentioning its significant role in Ukraine. He noted that such developments have underscored the necessity for governments globally to assess their capabilities in satellite communications. Telesat envisions Lightspeed as a crucial asset for Canada, which is increasing defense spending to fulfill its NATO commitments, as well as for other nations seeking independent or allied LEO solutions.

He remarked, “Ideally they build it themselves, but these LEO constellations are expensive, they’re complicated and they take a long time to roll out.” According to Goldberg, many governments will likely continue to rely on commercial LEO networks for the foreseeable future.

Telesat has also positioned Lightspeed as a potential resource for the U.S. Department of Defense, particularly in relation to its $175 billion “Golden Dome” initiative, which aims to enhance national security through improved satellite communication systems.

Geopolitical Shifts in Satellite Communications

During the same panel discussion, Goldberg shared insights with executives from other traditional geostationary orbit (GEO) operators. They agreed that nations, including the United States, are looking to diversify their satellite capabilities despite hosting significant networks like Starlink and the upcoming Project Kuiper from Amazon.

Jean-François Fallacher, CEO of Eutelsat, pointed to the changing nature of warfare, particularly in light of the ongoing conflict in Ukraine. He stated, “The geopolitical situation has been showing that warfare is changing,” emphasizing the increasing intersection of civil and military uses of satellite technologies.

Mark Dankberg, CEO of Viasat, also contributed to the discussion, noting the urgent need for operators to enhance the security of their commercial networks. He highlighted that the lines between civil and military domains are increasingly blurred, necessitating robust systems on both fronts.

Challenges Facing Traditional Satellite Operators

Legacy satellite operators continue to grapple with a decline in revenues from satellite video broadcasting, a sector that once constituted a substantial portion of their income. According to research from Novaspace, wholesale video revenues have decreased by 20% over the past four years, now totaling $4.4 billion and representing about 35% of the wholesale capacity market.

Goldberg acknowledged these challenges, stating, “It faces meaningful, secular headwinds.” Despite Telesat’s reliance on GEO capacity for its direct-to-home broadcast customers in Canada and the United States, the company has struggled to justify launching new broadcast satellites.

While Fallacher noted that the decline in video services is slower outside North America, he affirmed that operators must pivot to new business models. Nevertheless, panelists expressed skepticism that consumer broadband would be a viable avenue for growth, given Starlink’s market dominance and Project Kuiper’s impending launch.

Paul Gaske, COO of EchoStar, noted that consumer broadband systems require extensive capacity investments and are subject to competitive pressures from both LEO providers and terrestrial fiber subsidies. EchoStar has recently adopted an “asset-light growth” strategy following its sale of spectrum to SpaceX and AT&T, although executives offered limited details on future plans during a press conference on September 15.

Telesat’s proposal for Lightspeed emerges at a crucial time as governments and commercial operators seek to adapt to a rapidly changing landscape in satellite communications. The potential collaboration between Canada and Europe may shape future connectivity solutions, offering a bridge until IRIS2 is fully operational.