Faster but also more expensive? German Starlink Alternative: Rheinmetall, OHB, and Airbus Plan Cooperation

From Veronika Maucher 2 min Reading Time

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Recently, the Bundeswehr is said to have sent out the tender for SatcomBW Level 4. It has now emerged that not only Rheinmetall and OHB but also Airbus are looking to tackle the project together.

(Source:  AI-generated)
(Source: AI-generated)

SatcomBW Level 4 is considered the Bundeswehr's "Starlink alternative" and aims to provide greater independence from the USA. This was already leaked by insiders in January. At that time, speculation about a collaboration between Rheinmetall and OHB was rife, while Airbus, possibly in conjunction with Thales and Leonardo, was viewed as a competitor. According to a report by Spiegel, the three corporations are now set to jointly pursue the contract with the Federal Office for Equipment, Information Technology and Utilisation of the Bundeswehr (BAAINBw).

There are no official statements on the matter; the BAAINBw reportedly does not comment on the SatcomBW Level 4 tender and the associated rumours for procurement law and military security reasons, according to Handelsblatt. The three companies have also remained silent on the subject so far.

100 satellites by 2029

According to current reports, the tender has been issued to Airbus, OHB, and Rheinmetall. However, rather than submitting individual bids, the companies have decided to approach the mega-project collaboratively. According to Handelsblatt, the project involves a network of around 100 satellites that is intended to connect soldiers, tanks, and ships of the Bundeswehr by 2029. The estimated contract value is said to be between €8 billion and €10 billion.

The size and complexity of the contract are likely reasons why the three companies opted for collaboration, as it is believed that this is the only way to handle it in a timely manner. While OHB and Airbus can bring extensive experience in satellite construction, Rheinmetall could contribute its expertise related to the Bundeswehr's weapon systems and their integration.

No competition but also higher costs?

The partnership of Rheinmetall, Airbus, and OHB not only carries the advantage of ensuring that the largest German space project to date can be implemented as quickly and efficiently as possible. It also prevents the anticipated legal disputes regarding the official awarding of contracts by the BAAINBw. However, the downside could be hidden increased costs, as having only one applicant would lead to a direct award but also eliminate price competition.

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