Jaume Sanpera: "The defense industry taboo has been broken"

BarcelonaSateliot appeared at the center of Catalan public life in 2021, thanks to InfoK. The company, created three years earlier by a group of veterans from the telecommunications industry, was one of those responsible for Enxaneta, the first Catalan nanosatellite. At that time, it was still difficult to explain the idea of going to space to connect to the Internet of Things and send one message a day to receiving devices. Half a decade later, the company is already an aerospace benchmark, and aspires to fill space with 5G connectivity satellites for security forces, defense units, and strategic infrastructures. The executive director, Jaume Sanpera, receives Empreses in the company's brand new offices to talk about dual-use technologies, satellite constellations, and how to become friends with Elon Musk again.

At what point is Sateliot?

— The moment is spectacular. We are the first operator in the world to be making connections from a low-orbit satellite with standard equipment. With Internet of Things equipment, there is no one else doing it. We provide a service that is unique: the extension of coverage for mobile operators. There is a spectacular business in the Internet of Things [IoT for short in English]. There are many things that need to be connected, and this has surprised everyone, even the operators. Critical infrastructures, bridges that have a chip that evaluates the degradation of reinforced concrete, gas pipelines... There is a whole industry that needs this activity.

We are approaching the second anniversary of Sateliot's first commercial launch. Has the network grown?

— Now we have four satellites in orbit, and five more ready to launch in October this year. With this, we will have global coverage. We have evaluated what the market needs, and between 80% and 90% of clients request from one message per month to one message per hour. Until now, we have focused on this segment, where almost all the business is. We have designed a new satellite and have internalized the construction, because there are many companies that assemble satellites, but there are none that make exactly what we need.

What is the new satellite like?

— It has 40 times more capacity, from an IoT perspective, than those we launched until now. They are 160-kilogram satellites, capable of transmitting one message per hour in the worst-case scenario. Furthermore, they are demonstrator satellites for 5G connectivity, which will allow connecting mobile devices from anywhere in the world. They are not yet suitable for commercial service, because discontinuous 5G makes no sense, but they are useful for showcasing use cases.

With this, will they transition to 5G service?

— We will launch a satellite of this new generation in June of next year, and 16 more in December. We are starting to move to the next generation, the one that will allow real-time 5G connectivity. But to do this, hundreds of satellites are needed. This milestone is still far away.

With the releases planned for next year, will the connection infrastructure for IoT be complete?

— Correct. Does this mean we won't launch more IoT satellites? No, because 5G ones also serve the Internet of Things. But yes, the IoT vertical will be 90% complete.

And in terms of negotiation?

— We will start commercialization this year. There are already 150 companies piloting the connection of their devices with our satellite through their mobile operators. In seven selected countries, we already have agreements with one operator; in some cases, two or three. We will start billing normally from the second half of the year.

Before the first commercial launch, they expected to bill 1 billion by 2030. Will they achieve it?

— We have postponed the forecast by one year. In 2030, we expect to achieve 500 million euros in turnover. The delay in the appearance of the chips we needed has affected us. Nordic chips, which are the ones we have to use, have not been available until June 2025.

Is this postponement a problem for the company?

— No, it's part of the business continuity. We are still the first. Furthermore, if the chip problem had only affected us, it could have been a problem, but the delay has affected the entire market. We are still between 18 and 24 months ahead of any other competitor.

The next step will be 5G connectivity. How has the path to the new model been?

— Firstly, technologically, we know satellite 5G very well. We are fully integrated into the evolution of the terrestrial and non-terrestrial communications standard. And, on the other hand, the world has changed a lot from a geopolitical point of view. We have tensions everywhere. When we talk to defense and security bodies, they tell us that we need sovereignty, that without sovereignty we are lost. Satellite communications are a fundamental axis for the survival of Europe.

But should we compete with Starlink or Amazon Leo? Or cover European needs without depending on them?

— We don't have to compete because, obviously, neither Amazon nor Starlink will give us the sovereignty we need. We would always be at the mercy of the United States. Europe needs a 100% European operator, who can decide on satellite communication needs.

What would the satellite network that would guarantee European sovereignty look like?

— It would be built on our new generation satellites, which we haven't launched yet. How many? We'll need hundreds to have real-time coverage worldwide. They will be able to connect the Internet of Things and also 5G; the same devices can provide both services.

Do you have a calendar?

— The forecast is that they will all be deployed before 2030. That year, if all goes well, we will be able to have real-time 5G coverage worldwide.

How will Sateliot's 5G business work once it's deployed?

— It is different from IoT. Here we are talking about defense, security, critical infrastructures. The contracts are with the state, or with large strategic companies, with infrastructures spread all over the world, which need to connect in places of difficult access. And here we will need your help, because their needs are very diverse. A connected vehicle is not the same as a firefighter in the middle of the mountain. We have to understand very well what they ask for and design the satellites and the service to measure. And here we have the advantage of having the entire manufacturing process internalized.

Is the intention to keep the service only in Europe? Or will this more critical part also be available outside the continent?

— We will also lend it outside the continent, but always with allied countries. A low-orbit constellation covers the whole world. If we only focus on Europe, when the satellites pass over Australia, South Africa or Taiwan, they will not be doing anything. Furthermore, for the first time in history, in terms of international markets, being European is an advantage. Above the Chinese, of course, and the Americans, who have become an unpredictable power. And for sectors like defense and security, predictability is more important than performance. It is better to have a Cupra that always performs than a Ferrari that has to ask the US if it works today or not.

In his speech at the Meeting of the Cercle d'Economia, he said that Europe must recognize what kind of business aerospace companies need, with more direct contracts and fewer subsidies. Did you understand that?

— Yes. Everything is evolving very quickly. We have seen this very clearly with the issue of satellite spectrum. Until now, it was dominated by two North American companies, but from now on the European Commission will reserve part of the space for European companies, with very drastic requirements of Europeanity. This is a very clear sign that Europe is moving in this direction. Companies like ours can advance very quickly with contracts with the administration. And they are strategic projects, vital for the survival of the EU. I trust that both Spain and Europe are working to push innovative companies forward.

Has the historical taboo of the defense industry been broken?

— Yes, absolutely. It is understood that technologies are dual. Until now, money was invested in defense technology and then it passed to the civilian world. Now the civilian world is more advanced than defense. And then technologies take the reverse path. If dual technologies were used for certain things, perhaps they would not be viewed so favorably. But we, without going any further, connect from a city to an endangered animal species.

Sateliot opened a €100 million investment round in April. How is capital access for companies in your sector, especially those seeking larger amounts?

— It is true that we are starting to raise very important figures, which are not easy to mobilize. But, at the same time, the opportunities are immense. There are increasingly more specialized funds in the space and defense sector, which did not exist before. Furthermore, public match funding works very well in these strategic sectors. And in our case, technological capabilities help a lot, even though there are no huge turnover figures.

Does the sector depend on foreign capital to finance itself?

— Our intention is to raise 100% European capital. We only accept foreign capital from friendly countries, and without influence in the company.

Are the United States a friendly country?

— Yes, they always are. But the most important thing is that the company's decisions are made here. Other countries can participate in these rounds, and this does not imply that they impact the day-to-day operations of the companies.

A large part of the space industry still depends on SpaceX. Can one be sovereign depending on Elon Musk?

— SpaceX will always be there. But SpaceX loses all strength to influence our sovereignty when it ceases to be essential. And this is what we must achieve: not to depend exclusively on anyone. A sovereign Europe must have an equal relationship with the rest of the actors. That is why we must equip ourselves with defensive deterrence and sovereignty in strategic technologies.