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France’s SNCF to Roll Out Satellite Internet on Trains Amid European Connectivity Push

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France’s state railway operator SNCF is preparing to introduce satellite internet on its trains, joining a growing movement across Europe to improve onboard connectivity using low Earth orbit (LEO) satellite networks. The company announced on Friday it will launch a tender seeking providers to supply satellite-powered internet services.

Dual-Network Strategy

In a statement to Reuters, SNCF said it is adopting an “innovative approach” that combines terrestrial (4G/5G) and satellite internet to enhance network resilience and continuity across its vast rail network, including in rural and isolated areas.

“The satellite plus 4G/5G combination would eliminate dead zones and offer stable, fast service adapted to new uses such as streaming or video conferencing,” the company said.

Possible Partners: Starlink and Eutelsat

According to a source familiar with the matter, Elon Musk’s Starlink and France’s Eutelsat are among the companies being considered for the project. While SNCF declined to confirm specific talks, Eutelsat has publicly expressed interest, stating it is already in discussions with SNCF about a potential pilot project.

A Eutelsat spokesperson highlighted its experience in similar pilot efforts in Britain and Kazakhstan, and emphasized its position as one of only two active LEO providers currently operating, alongside Starlink. Eutelsat’s OneWeb network, backed by the French government, operates more than 600 LEO satellites.

“We intend to bid for the contract with our French partners such as Orange Business Services,” said the spokesperson.

A Broader European Trend

France’s move mirrors similar efforts across Europe:

  • Italy’s Ferrovie dello Stato ran a two-week trial in June with providers including Starlink.

  • Scotland’s ScotRail began a six-week Starlink trial in May.

These initiatives seek to address longstanding problems with mobile-based train internet, which often suffers from dead zones, tunnel interference, and rapid handovers between towers—particularly challenging at high train speeds.

In contrast, LEO satellites offer more stable, continuous coverage, including in rural and mountainous regions where cellular signals are often weak or absent.

Looking Ahead

With public demand growing for high-speed, uninterrupted internet on the move, satellite connectivity is poised to become a mainstay of next-generation transportation infrastructure. France’s entry into the space-connected railway space may soon redefine the standard for European rail travel.

South Korea’s Hanwha Sells Entire 5.4% Stake in Eutelsat Amid Strategic Refocus

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South Korean aerospace and defense company Hanwha Systems announced on Thursday that it is selling its entire 5.4% stake in the Franco-British satellite operator Eutelsat for €77.6 million ($88.5 million). This move comes as Eutelsat seeks new investors to support its second-generation low Earth orbit (LEO) satellite program and commitments to the European Union’s IRIS² project.

Eutelsat has faced significant financial challenges, accumulating hundreds of millions of euros in losses, largely due to its declining video business and delayed returns from its 2023 acquisition of OneWeb. The acquisition has struggled amid stiff competition and slower-than-expected technology deployment.

Hanwha’s sale price of €3.00 per share represented a 13.9% discount to Eutelsat’s previous closing price of €3.48 and reflects a steep loss of approximately 70.5% compared to Hanwha’s initial $300 million investment in OneWeb in 2021. Eutelsat’s shares reacted with a 14.8% drop on the Paris market following the announcement.

Hanwha emphasized that the sale aligns with a strategic pivot to focus more on its core businesses related to defense satellites and military communications, rather than civilian satellite operations. A Hanwha representative also resigned from Eutelsat’s board in April, signaling a reduced involvement.

Eutelsat is currently undergoing leadership changes and financial restructuring, with Jean-François Fallacher recently appointed as CEO. There are also reports that the French government is considering increasing its stake in Eutelsat, potentially doubling it with a capital injection of €1.5 billion to stabilize the company.

Meanwhile, both Starlink and Eutelsat OneWeb recently received licenses from South Korea’s Science Ministry to operate satellite internet services in the country, with service launches expected soon. Hanwha acts as a distributor for OneWeb in South Korea under a 2023 agreement targeting improved LEO communications for government and underserved areas.

Eutelsat Meets Revenue Forecasts as OneWeb Gains Government Clients Amid Geopolitical Shifts

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Eutelsat reported €300 million in third-quarter revenue for its 2024–25 fiscal year, slightly below last year’s figure but in line with analyst expectations. The French satellite operator, which owns OneWeb, the world’s second-largest low-Earth orbit (LEO) satellite constellation, is seeing a rise in government demand for secure, non-American and non-Chinese satellite services.

Key Financials:

  • Q3 revenue fell 1.9% year-on-year

  • Analyst consensus was €302 million, with estimates ranging from €294 million to €307 million

  • Government services revenue rose 10.2%, the fastest-growing segment, fueled by geopolitical demand for independent satellite connectivity

Strategic Positioning:

Eutelsat’s OneWeb network, with over 600 LEO satellites, offers secure broadband services to governments and militaries at approximately 1,200 km altitude. This positions it as a European alternative to SpaceX’s Starlink, which has over 7,000 satellites and deep traction with commercial clients.

Eutelsat CFO Christophe Caudrelier emphasized the strategic importance of non-U.S. and non-Chinese alternatives in satellite communication:

“With the current geopolitics, there is interest from many countries… Many non-aligned countries are seeking alternative, non-American, non-Chinese solutions,” he stated.

Challenges & Developments:

  • The company experienced a drop in its U.S. Department of Defense contract renewal rate to 50%, citing structural changes in U.S. spending under President Donald Trump’s administration. Without that one-off, the renewal rate would have been closer to 70%.

  • Eutelsat also took a €16 million revenue hit due to EU sanctions requiring the cessation of Russian channel broadcasts.

  • The firm is actively seeking new capital investors to support its future financing needs.

Despite the recent CEO replacement, Eutelsat reaffirmed its full-year outlook, signaling stability in operations as it navigates market transitions and growing demand for secure satellite services from non-aligned nations.