Eutelsat's Stock Soars as Ukraine Seeks Alternative Internet Solutions Amid Starlink Concerns

Eutelsat's Stock Soars Amid Concerns Over Ukraine's Starlink Access

Eutelsat, a French satellite company, has seen its stock price skyrocket in recent days due to concerns that Ukraine's access to Starlink, a vital internet provider, may be under threat. The company's shares surged 68% on Monday and another 123% on Tuesday, reaching $4.77. By Wednesday, the stock had climbed to $8.34, a 533% increase from the start of the week.

This surge comes as the US suspended aid to Ukraine, raising fears of disruptions to critical capabilities like advanced air defenses and internet access. Starlink, owned by Elon Musk's SpaceX, has been instrumental in providing internet access to Ukraine's military, and its loss would be a significant blow to Kyiv's communications and drone operations.

Eutelsat, which merged with a UK-based Starlink competitor, OneWeb, in 2023, is now in talks with the European Union about how it might contribute to Ukraine's internet access. The company claims to offer the same capabilities as Starlink in terms of coverage and latency in Europe.

However, it's unclear whether Ukraine's Starlink access is actually at risk. Musk has denied reports that US officials discussed cutting off Starlink from Kyiv, and European countries also fund many terminals. Poland, which pays for about half of Ukraine's Starlink terminals, has said it will continue to do so.

Through OneWeb, Eutelsat is already providing some satellite services to Ukraine's governments and institutions, but it only has about one-tenth of Starlink's satellites. Eutelsat also operates 35 Geo satellites, which could potentially help bolster Ukraine's internet capacity.

On Sunday, European Commission spokesperson Thomas Regnier said regional leaders were considering giving Ukraine access to GovSatCom, a shared network of satellites owned by European member states, as an alternative.

Eutelsat's stock boost also comes as European defense manufacturing shares surged due to the recent strain on US relations with its traditional allies and Ukraine. European leaders have announced plans to allocate 800 billion euros, or about $840 billion, to their collective defense spending.