Eutelsat Stock Soars as Potential Starlink Replacement in Ukraine Emerges
Staff Editor Eutelsat Shares Soar Amid Speculation of Replacing Starlink in Ukraine
Eutelsat, the French satellite operator, has seen its share price skyrocket in recent days, fueled by speculation that it could potentially replace Starlink’s services in Ukraine. The surge comes in the wake of the United States suspending aid to Ukraine, raising concerns about the continuity of Starlink’s crucial internet services for the country’s military operations.
The company’s stock experienced a dramatic rise, jumping 68% on Monday and an additional 123% on Tuesday, closing at $3.79. This sudden increase in market value coincides with growing apprehension about potential disruptions to internet access in Ukraine following the US aid suspension.
Eutelsat, which merged with UK-based Starlink competitor OneWeb in 2023, has reportedly engaged in discussions with the European Union regarding its potential contribution to Ukraine’s internet infrastructure. The company claims it is prepared to swiftly deploy equipment in Ukraine for critical missions.
European leaders are responding to the situation by increasing defense spending and exploring alternatives for Ukraine’s internet access. This shift in focus has benefited Eutelsat, along with other European defense manufacturing companies, whose shares have also seen significant gains.
Despite the recent surge, Eutelsat’s stock remains well below its historical highs, having peaked at $33 in 2015. The company has not issued any official comments on the situation outside of regular business hours.
It’s important to note that there has been no official indication that Ukraine’s access to Starlink services will be cut. Elon Musk, CEO of SpaceX, which operates Starlink, has denied reports suggesting a potential withdrawal of services linked to a minerals deal. Additionally, several European countries, including Poland, continue to fund Ukraine’s Starlink terminals.
Currently, Eutelsat, through its merger with OneWeb, provides some satellite services to Ukraine. However, its capabilities are more limited compared to Starlink, with Eutelsat operating 35 Geo satellites and approximately 630 low-earth orbit satellites.
As the situation develops, the European Commission is considering alternatives such as GovSatCom, a shared satellite network, to ensure continued internet access for Ukraine. European Commission President Ursula von der Leyen has also announced plans for increased defense spending, further highlighting the shifting priorities in the region.
The unfolding events underscore the critical importance of satellite internet services in modern warfare and international relations, with Eutelsat potentially positioned to play a larger role in Ukraine’s communications infrastructure.
