It’s fascinating how quickly things can change in the world of finance. On a seemingly ordinary Monday, Eutelsat’s stocks experienced an explosive surge—shooting up 68% in just one day. To add to the excitement, the shares catapulted by another 123% the following morning, reaching $4.77 before settling at $3.79 by Tuesday’s close. But what caused such a dramatic shift in market dynamics?
The backdrop to this financial ride was actually a geopolitical twist: the United States suspended its aid to Ukraine. This decision sent a ripple of fears through global markets, worries that Ukraine’s access to capabilities like cutting-edge American air defenses might be compromised and that its battlefield internet communications could face significant disruptions.
Think about it. A nation at war needs reliable communication channels. Enter Starlink, the satellite internet constellation operated by Elon Musk’s SpaceX. Until now, it’s been a lifeline for Kyiv, ensuring constant connectivity. What happens if this lifeline is severed? Such an occurrence could, quite frankly, be catastrophic for Ukraine’s information relay on the ground.
This chaotic scenario, however, frames a once-in-a-lifetime opportunity for Eutelsat. Why? In 2023, Eutelsat merged with OneWeb, a UK-based competitor of Starlink. As European leaders pledge to increase defense budgets, discussions are underway about bridging any internet service gaps Ukraine might face.
A representative from Eutelsat informed Reuters that talks with the European Union are actively ongoing, exploring how they might extend internet access to Ukraine. A hopeful prospect, wouldn’t you agree?
In a statement to Business Insider, a spokesperson from Eutelsat confidently asserted, “We provide similar capabilities to Starlink concerning coverage and latency in Europe.” Does this mean we may soon witness a shift in the satellite internet landscape? The spokesperson further mentioned, “We are actively collaborating with European institutions and business partners to enable the swift deployment of additional user terminals for critical missions and infrastructure.”
Despite the week’s promising market activity, Eutelsat’s shares are still a shadow of their former glory days. For context, their stock peaked around $33 in mid-2015 but has been on a gradual decline ever since. Nonetheless, the recent uptick offers a glimmer of hope amidst past shadows.
No Official Sign Yet That Starlink Will Disappear
So, is the Starlink lifeline really under threat? Let’s delve deeper. As of now, there’s no definitive indication that Ukraine will lose Starlink access. A point of intrigue here revolves around Musk’s affiliations. A close ally of former President Donald Trump, Musk recently denied a February Reuters report suggesting U.S. officials considered severing Starlink from Kyiv over a minerals deal disagreement.
Reflecting on fiscal contributions, the U.S. does partially fund Ukraine’s Starlink subscription. However, European countries also shoulder a significant portion. In fact, Poland finances around half of Ukraine’s Starlink terminals and has vowed to continue this support.
While OneWeb, through Eutelsat, is already providing some satellite services to Ukraine, there’s a big gap to fill. Presently, OneWeb operates with fewer than 700 satellites, a stark contrast to Starlink’s vast armada of over 7,000. In terms of technology, Eutelsat runs 35 geostationary satellites orbiting at 21,000 miles and approximately 630 low-Earth orbit ones at about 750 miles from the Earth’s surface.
Internet terminals usually prefer low-earth orbit satellites for their proximity advantages. Yet, Eutelsat believes its geostationary satellites can also enhance Ukraine’s internet capabilities. On this, a company representative remarked, “The 35 Geo satellites will also play a pivotal role in bolstering Ukraine’s internet capacity.”
Recently, European Commission spokesperson Thomas Regnier hinted at the possibility of offering Ukraine access to GovSatCom—a shared satellite network owned by European member states—as a potential alternative.
March 5, 2025: This story was updated to reflect a comment from Eutelsat.
Edited By Ali Musa
Axadle Times International – Monitoring
