The race to provide global internet coverage from space has largely been dominated by American giants like SpaceX's Starlink and Amazon's Project Kuiper, along with emerging Chinese competitors. But a French startup believes there's room for a fundamentally different approach, one that works with existing telecom operators rather than against them.
Constellation Technologies & Operations (CTO), founded by Charles Delfieux, is developing what it calls a "neutral" satellite constellation that would allow telecom operators worldwide to offer high-speed internet from space using their own 5G spectrum, without the massive capital investments typically required for space infrastructure. In an industry where most satellite internet providers compete directly with traditional telecom companies, CTO's partnership-focused model represents a potentially significant shift that could reshape how space-based connectivity evolves.
The stakes are enormous. Despite decades of terrestrial network expansion, millions of people worldwide still lack reliable internet access, particularly in rural and remote areas where extending fiber optic cables and cell towers remains economically challenging.
Meanwhile, the satellite internet market is projected to reach tens of billions of dollars in the coming decade, making it one of the most watched sectors in the broader "New Space" economy.
From World Bank to Space Entrepreneurship
Delfieux's path to space entrepreneurship was shaped by his international experience, particularly his time at the World Bank, where he witnessed firsthand the persistent connectivity challenges facing developing nations.
"I could witness, to what extent, access to connectivity has remained a challenge for millions of people in the world," Delfieux explained in a recent interview. "Access to connectivity brings so much in terms of information, in terms of transparency, in terms of access to digital services, boosting productivity."
This exposure to global connectivity gaps led Delfieux to a key realization: for the first time in telecommunications history, space-based internet could compete with terrestrial networks on both price and quality. "You can now get access to high-speed [internet] from space at the price points and at a quality of service that compete with terrestrial telecommunication networks," he said.
Rather than building another proprietary satellite internet service, Delfieux saw an opportunity to work with the established players already serving billions of customers. "We think that there is a hugely promising business opportunity to work in partnership with those who are already today delivering connectivity services to billions of people in the world. Those actors are telecom operators," he said.
Technology Built for Partnership
CTO's technical approach centers on two key innovations that differentiate it from competitors. First, the company plans to deploy its satellites in Very Low Earth Orbit (VLEO) at approximately 375 kilometers altitude, which is significantly lower than most competitors. This positioning offers multiple advantages: reduced energy requirements for data transmission, smaller and cheaper user terminals, lower latency, and enhanced environmental sustainability.
"Since our satellites are lower than competitors, they need less energy to transmit the same level of data, and by doing so, we need smaller and cheaper user terminals on the ground," Delfieux explained. The lower orbit also means satellites naturally re-enter Earth's atmosphere within seven years, completely disintegrating and avoiding space debris concerns.
The second major innovation involves spectrum usage. While most satellite internet providers use traditional satellite spectrum bands, CTO plans to utilize telecom operators' existing 5G millimeter wave (mmWave) spectrum. This approach serves dual purposes: it helps operators access spectrum they can use for space-based communications while allowing CTO to incorporate low-cost, mass-produced components from terrestrial telecom networks.
"By reusing that 5G spectrum from telecom operators, we basically offer the telecom operators a path, an opportunity to access spectrum they can use for space-based telecommunication," Delfieux said. The strategy also addresses spectrum scarcity issues, as traditional satellite bands become increasingly crowded with large constellations from SpaceX, Amazon, and Chinese competitors.
A Different Business Model
Where CTO most clearly differentiates itself is in its business approach. While SpaceX's Starlink sells directly to consumers and businesses, CTO is building what Delfieux calls a "B2B2C" model by selling wholesale capacity to telecom operators who then serve end customers under their own brands.
"We are designing our broadband constellation as a shared space infrastructure to enable telecom operators from all over the world to deliver high-speed internet services from space to their clients, as they do today on terrestrial telecommunication networks," Delfieux said.
This model aims to address a growing competitive threat that traditional telecom operators face from satellite internet providers. Rather than compete with these operators, CTO positions itself as an enabler. "We want to be the telecom-friendly constellation to enable telecom operators to become tomorrow's space network operators," Delfieux said.
Recent Partnerships and Milestones
CTO's partnership strategy has gained momentum with two significant agreements. In May 2025, the company signed a memorandum of understanding with the European Space Agency (ESA) to conduct joint experiments in low Earth orbit using CTO's first payload, scheduled for launch in June 2025. This "Early Test" payload will be the first regenerative system operating in 5G mmWave bands aboard a satellite.
The ESA partnership represents more than just technical validation. It's part of a broader European push for technological sovereignty in space. As Antonio Franchi, Head of ESA's 5G/6G NTN Programme Office, noted in announcing the partnership, the collaboration aims to establish European leadership in hybrid terrestrial-satellite connectivity.
In March 2025, CTO also signed an agreement with TDF, France's leading neutral telecom infrastructure operator. This partnership will integrate VLEO satellites as complementary solutions to terrestrial infrastructure, with particular focus on emergency connectivity during natural disasters or major crises.
"This partnership with TDF is a strategic milestone that perfectly aligns with our ambition to converge and integrate terrestrial and space networks," Delfieux said.
Funding and Growth Trajectory
CTO closed a nearly €10 million seed funding round in October 2024 and is now launching its Series A fundraising to finance the next phase of development. The company currently employs 30 people across offices in Paris and Toulouse, with plans to reach 40 employees by year-end.
The Toulouse office houses CTO's 5G laboratory for radio frequency testing, taking advantage of the city's deep aerospace engineering talent pool. "The pool of engineering skills is incredible," Delfieux noted about the Toulouse ecosystem.
The funding will support the launch of two full satellites in 2027, followed by mass production and deployment of the full constellation between 2028 and 2030. The complete system will comprise between 1,500 and 3,400 satellites, depending on coverage requirements and market demand.
Competitive Positioning
CTO's approach puts it in a unique position relative to industry leaders. While acknowledging SpaceX's technical achievements, Delfieux emphasized the fundamental business model differences. "They are basically selling their services directly to end users... They are becoming more and more every year [a] more powerful telecom operator that is starting to be in competition with our clients, which are telecom operators."
Rather than viewing this as a competitive threat, CTO sees it as validation of the market opportunity. "We have that neutral approach, aiming at allowing telecom operators to operate independently with shared space infrastructure, while SpaceX has a very dominating approach, consisting of trying to basically compete tomorrow with most telecom operators in the world."
The company's timeline puts it several years behind SpaceX in deployment, but Delfieux argues that CTO's telecom-friendly approach addresses a different market need, one that becomes more pressing as satellite internet providers grow larger and more competitive with traditional operators.
Future Outlook
As CTO prepares for its June 2025 payload launch and subsequent Series A funding, the company represents a test of whether partnership-based models can succeed in the increasingly competitive satellite internet market. Success would validate not just CTO's technology, but an entirely different philosophy about how space-based connectivity should evolve.
The implications extend beyond individual company success. If telecom operators can effectively leverage shared satellite infrastructure to compete with proprietary constellations, it could preserve the traditional telecom industry structure while accelerating global connectivity deployment.
For Delfieux, the vision extends far beyond technology or business models to fundamental questions about digital inclusion and sovereignty: "Tomorrow telecom operators will be hybrid telecom operators operating at the same time terrestrial telecommunication networks and space-based telecom networks."
