'Europe doesn't realize how dangerous it is': Telecoms CEO warns of U.S. dominance in satellites, AI

The CEO of a prominent French engineering firm has issued a stark warning about Europe's reliance on American technological infrastructure, particularly in the realms of artificial intelligence and satellite communications. Speaking on CNBC's "Squawk Box Europe," Olivier Roussat, the head of Bouygues, emphasized the need for Europe to recognize the risks associated with depending on U.S. systems, such as Elon Musk's Starlink. Roussat articulated that Europe must strive for greater autonomy in these critical areas. "There are two domains where Europe needs to grasp the magnitude of the situation—AI and satellites," he stated. He cautioned that an over-dependence on American platforms could pose significant dangers to the continent's technological sovereignty. Bouygues, which operates in construction, transport, and telecommunications, is actively pursuing consolidation in the French telecom market. The intense price competition among local operators has strained their financial performance. Roussat questioned the necessity of relying on services like Starlink, advocating instead for a European solution that reinforces sovereignty. Starlink, a subsidiary of SpaceX, currently leads the global satellite internet market with a network of approximately 10,000 satellites. The firm is also preparing for a potential initial public offering that could become one of the largest ever on Nasdaq. Roussat highlighted the risks of having a non-state actor like Starlink hold the power to disrupt connectivity across Europe. In a strategic move, Bouygues recently made a substantial cash offer for a majority stake in SFR, France's second-largest telecom operator, valued at €20.35 billion ($23.6 billion). This deal, if completed, could reduce the number of telecom operators in France from four to three. However, the acquisition is subject to regulatory review, and the bidders will require approval from antitrust authorities. Roussat expressed confidence that the European Commission could create an environment conducive to fair competition, suggesting that consolidation could be achieved without compromising market integrity.