Eutelsat Stock Rises Amid SpaceX Starlink Issues in Ukraine
European satellite operator Eutelsat saw its shares climb significantly after reports emerged of restrictions on SpaceX's Starlink service affecting Ukraine's military operations. This has bolstered Eutelsat's position as a European alternative.
Shares in French satellite operator Eutelsat surged 17.7% on Friday, marking a roughly 25% gain over the past week. The stock increase was driven by reports detailing restrictions placed on SpaceX's Starlink satellite internet service, which has been critical for Ukraine's defense.
Ukrainian officials accused SpaceX of imposing sudden restrictions on its military-grade Starlink service, hindering Ukraine's ability to counter Russian attacks. President Volodymyr Zelenskyy stated that connectivity outages have contributed to civilian casualties.
SpaceX CEO Elon Musk has attributed control of the Starshield systems to the U.S. government and President Donald Trump. Eutelsat, which merged with satellite internet provider OneWeb in 2023, aims to challenge Starlink's market dominance, positioning itself as a European alternative.
Analysts at Deutsche Bank noted that the rise in Eutelsat's stock supports the sovereign value of European satellite networks. However, they also pointed out that while Eutelsat operates a global Low Earth Orbit (LEO) constellation, its scale may not match Starlink's capacity for providing a large number of terminals. Eutelsat currently has over 600 satellites, compared to Starlink's more than 6,750.
Ukraine's Deputy Minister for Recovery, Infrastructure and Transport, Serhiy Derkach, confirmed that Russia has exploited limitations in the Starlink service to target Ukrainian infrastructure.