The Federal Cartel Office has cleared the way for a new alliance in the German defense and space industry: on Friday it approved the establishment of a joint venture between Rheinmetall Digital and OHB. This means that the consortium can officially act as a bidding consortium to take on the Bundeswehr’s largest procurement order to date in the field of satellite communications.
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The focus of the project is the expansion of the military network infrastructure in space, which is intended to ensure the digital sovereignty of the German armed forces for the coming decades. The President of the Cartel Office, Andreas Mundt, justifies the decision with the complementary orientation of the partners. Since Rheinmetall and OHB operate in different specialist areas, the auditors see no competitive concerns about bundling competencies. Rather, the cooperation makes it possible to submit a comprehensive offer for the complex project.
The joint venture is intended to act as a system integrator. OHB is responsible for the space and ground segment – i.e. the construction of the satellites and ground stations. Rheinmetall is to take over the end-user terminals and the integration into the force’s network.
A German Starlink for the new era
The release is based on the SATCOMBw stage 4 project. The current version 3 still relies on a few large satellites in a geostationary orbit at an altitude of 36,000 kilometers. The fourth level is intended to mark a change. The Defense Department is planning a network of at least a hundred satellites in low Earth orbit (LEO). This system is similar to SpaceX’s Starlink commercial network and offers shorter signal transit times and greater reliability due to its close distance to Earth. With a contract value of around 8 to 10 billion euros, it is the centerpiece of a 35 billion euro budget for space technologies until 2030.
The cartel office’s decision increases competition. The new alliance will compete with the aerospace company Airbus, which has previously played a dominant role in the Bundeswehr’s satellite communications. Airbus was only awarded the contract for geostationary stage 3 in the summer of 2024, which should be ready for use by 2027. Rheinmetall and OHB are now targeting the technological successor, which according to the plan should be in space by 2029. The now legally secure merger of the expertise of the Düsseldorf defense company and the Bremen satellite manufacturer is intended to create a powerful national player that challenges the hegemony of established corporations in orbit.
(mki)
