Eutelsat Shares Jump 19% as Starlink Restrictions in Ukraine Highlight European Alternative
· Business · CNBC
Eutelsat shares rose 19% on Friday after Ukrainian officials reported that SpaceX's Starlink military-grade internet service was suddenly restricted, disrupting drone operations and contributing to civilian deaths during Russian attacks. Ukraine's President Volodymyr Zelenskyy accused SpaceX of switching off Starlink without warning, hindering Ukraine's defense capabilities. Elon Musk responded by stating that Starshield systems are under U.S. government and President Donald Trump's control, shifting blame away from SpaceX. Eutelsat, which merged with OneWeb in 2023 and operates over 600 satellites, is viewed by analysts as a credible European alternative to Starlink despite having far fewer satellites than Starlink's 6,750-plus constellation. Deutsche Bank noted the share surge reflects market confidence in the sovereign value of European satellite networks amid the disruption.
Why it matters
The restrictions on Starlink in Ukraine have raised concerns about reliance on foreign-controlled satellite systems for national defense, particularly as European alternatives like Eutelsat gain market attention. This shift could influence future defense procurement decisions in countries seeking secure, sovereign communication infrastructure.
Read the original report — CNBC
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