Starlink, U.S. dominance in satellites is ‘dangerous’: Telecoms CEO
The CEO of one of France’s largest engineering groups told CNBC that Europe should not rely on US infrastructure, warning of a “dangerous” over-reliance on infrastructure like Elon Musk’s Starlink.
“There [are] Two things we need for the future [Europe to] Realize how big it is. “This is artificial intelligence and this is satellite.” bouygues CEO Olivier Roussat spoke to CNBC’s “Squawk Box Europe” on Thursday.
“Europe does not fully realize how dangerous it is to rely solely on American infrastructure.”
Based in Paris, Bouygues operates in the construction industry, transportation and telecommunications.
The company is blocking telecommunications initiatives in France, where operators are engaged in intense price competition, weighing on their profitability.
“We’re not sure we absolutely need a Starlink or something like that,” Roussat said, adding that Europe needed something “to get some sovereignty.”
Starlink, a division of Musk-run SpaceX, currently dominates global satellite internet service and operates a constellation of nearly 10,000 satellites. SpaceX plans to list on Nasdaq in what could be the largest IPO ever.
Roussat highlighted Europe’s vulnerability to a non-state actor like Starlink, which has the power to single-handedly disconnect the continent.
In April, Bouygues made a cash offer for the largest overall share in rival operator SFR deal value 20.35 billion euros ($23.6 billion) this will be Europe’s largest telecommunications deal in recent years. In a joint bid with peers Free–iliad Group and Orange, Bouygues Telecom will acquire a 42% stake in SFR.
SFR is France’s second largest telecom operator and this acquisition will reduce the number of network operators in the country from four to three.
Regulatory reviews are ahead and bidders will need permission from antitrust authorities to proceed, testing the European Commission’s appetite for consolidation in Europe’s already crowded telecommunications market.
“It’s a game for them [the European Commission] It is about creating conditions where there will be fair competition between us, and I think that is possible,” Roussat said on Thursday.
