Eutelsat replaces CEO with Orange executive in surprise move

In a strategic leadership shake-up, Franco-British satellite operator Eutelsat has announced the appointment of Orange France CEO Jean-François Fallacher (pictured) as its new chief executive. The move, unveiled on Monday, comes at a pivotal time for the company as Europe intensifies efforts to build independent satellite communication capabilities and reduce reliance on Elon Musk’s Starlink.

Fallacher, a veteran telecom executive with 15 years of leadership experience across Orange’s operations in Romania, Poland, Spain, and France, will officially step into the role on June 1. He replaces Eva Berneke, who has steered Eutelsat since 2022 and notably oversaw its high-stakes merger with British satellite firm OneWeb in 2023.

A Continuity Appointment, Not a Strategic Shift

Despite the unexpected nature of the announcement, a Eutelsat spokesperson emphasized that Fallacher’s appointment signals continuity, not a departure from the company’s current strategy. “The path is clearly traced and the new CEO is committed to build,” the spokesperson said.

Investors appeared to welcome the news — Eutelsat shares, which have soared 90% this year, rose another 8% following the announcement. The company’s stock has been particularly volatile, with only 20.9% of shares publicly traded in Paris and London.

High Stakes for Europe’s Sovereign Space Strategy

Eutelsat’s leadership change lands as Europe works to secure sovereign commercial and defence satellite options amid escalating geopolitical tensions and the war in Ukraine. The European Union and member states are increasingly cautious about relying on non-European providers for critical infrastructure, with Starlink’s dominance in low Earth orbit (LEO) communications raising concerns over strategic autonomy.

Under Berneke’s tenure, Eutelsat completed its merger with OneWeb, granting it control over the only other global LEO satellite constellation besides Starlink. This positioned the company as a key player in Europe’s efforts to develop home-grown alternatives for space-based internet services.

In early March, speculation that Eutelsat could replace Starlink in delivering satellite internet to war-torn Ukraine sent its stock surging — marking its biggest weekly gains on record. Berneke later confirmed that Eutelsat had been providing high-speed internet services to Ukraine for roughly a year through a German distributor.

A Costly Expansion Ahead

While the OneWeb merger was intended to boost Eutelsat’s annual revenue to \$2 billion by 2027, the company now faces a steeper climb than initially expected. According to recent reports, Eutelsat has determined it will need three times the number of satellites than previously planned to fully deliver on its connectivity ambitions.

This scale-up will require up to €2.2 billion (\$2.5 billion) in additional financing, prompting speculation about a potential share sale to raise capital. Berneke hinted at governance and shareholder structure adjustments last month, laying the groundwork for Monday’s leadership transition.