French aerospace and defense company Thales THLLY THLEF has raised concerns about governments relying too heavily on private satellite networks like Elon Musk's Starlink, warning of potential security risks and instability.
What Happened: Speaking at a results briefing on Tuesday, Thales CEO Patrice Caine cautioned that Starlink’s business model, which requires frequent satellite replacements, raises questions about its long-term sustainability, reported Reuters.
Without naming SpaceX's Starlink directly, he pointed to the risks of governments depending on external providers for critical communications.
See Also: Could Musk’s SpaceX Secure An FAA Deal For Starlink Under Trump’s Presidency?
"Government actors need reliability, visibility, and stability," Caine said, adding that a service provider influenced by both economic and political motivations may not inspire confidence.
European nations, including France and Germany, prefer to maintain greater control over their satellite infrastructure, backing systems like the Iris2 constellation for secure communications, he said.
“When you operate government communications you don’t necessarily want to be dependent on an external person, whoever that is. That is why…the vast majority of government infrastructure in Europe is owned or has been purchased.”
Starlink did not immediately respond to Benzinga’s request for comments.
Why It Matters: Thales' concerns come as SpaceX rapidly expands Starlink's global reach, boasting over 7,000 satellites and millions of users worldwide.
The company has deployed its satellites faster than competitors like Europe's OneWeb, leveraging reusable Falcon 9 rockets.
The concerns raised by Thales come at a time when Starlink is poised to receive increased federal funding from the U.S. government. The Commerce Department is considering changes to allow Starlink to access more funds for rural broadband expansion, potentially increasing its influence.
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