Eutelsat Stock Surges Amid Starlink Concerns in Ukraine

Eutelsat, a French satellite company, has witnessed a remarkable surge in its stock price, soaring over 500% in response to growing concerns regarding the reliability of Starlink services in Ukraine. On Monday, shares on the Paris exchange jumped by 68%, followed by an astonishing 123% increase the next morning, reaching $4.77. However, prices moderated to $3.79 by the market close on Tuesday.

Impact of US Aid Suspension on Ukraine’s Internet Access

The dramatic rise in Eutelsat’s stock comes in the wake of the United States suspending aid to Ukraine on Monday. This decision has raised alarms about potential disruptions to critical capabilities, including advanced internet access on the battlefield. As European leaders discuss increasing defense spending, there is a growing possibility that they may seek to fill any gaps in Ukraine’s internet connectivity.

Eutelsat’s Commitment to Ukraine

In light of its soaring share price, a spokesperson for Eutelsat informed Reuters that the company is in discussions with the European Union regarding how it can contribute to enhancing internet access in Ukraine. Furthermore, Eutelsat has indicated to The Financial Times that it possesses equipment ready for rapid deployment in Ukraine to support essential missions and infrastructure.

Historical Context of Eutelsat’s Stock Performance

Despite the impressive jump in stock value this week, Eutelsat’s shares remain significantly below their historical highs. The stock peaked at approximately $33 in mid-2015 but has experienced a steady decline over the past decade. This recent surge highlights the volatility and potential for recovery in the satellite communications sector.

Starlink’s Role and Future in Ukraine

Elon Musk, a prominent figure in the tech industry and a close ally of former President Donald Trump, has denied a Reuters report from late February suggesting that US officials contemplated cutting off Starlink services to Kyiv if Ukraine rejected a minerals deal with Washington. While the US partially funds Ukraine’s Starlink subscription, several European nations also contribute to the funding of numerous terminals.

Poland, for instance, covers approximately half of Ukraine’s Starlink terminals and has confirmed its commitment to continue funding these services. Through its partnership with OneWeb, Eutelsat is already providing some satellite services to Ukrainian government entities and institutions. However, it is important to note that Eutelsat operates only about one-tenth of the satellites that Starlink has in orbit.

Comparative Analysis of Satellite Constellations

Eutelsat’s satellite constellation consists of fewer than 700 satellites, while Starlink boasts over 7,000 satellites in its network. Eutelsat operates 35 geostationary satellites, which orbit at an altitude of 21,000 miles above Earth, alongside approximately 630 low-earth orbit satellites, which orbit at around 750 miles above the planet.

Future Prospects for Ukraine’s Satellite Connectivity

On Sunday, European Commission spokesperson Thomas Regnier informed reporters that regional leaders are contemplating granting Ukraine access to GovSatCom as an alternative to existing satellite services. This potential move underscores the urgency and importance of ensuring reliable internet access for Ukraine, especially in light of the ongoing conflict.

As the situation evolves, the satellite communications landscape in Ukraine remains uncertain. The recent surge in Eutelsat’s stock price reflects the shifting dynamics and the increasing importance of reliable internet access in modern warfare. For more detailed information, you can read the original article here.