Eutelsat Stock Surges Amid Starlink Concerns in Ukraine

Eutelsat, a French satellite company, has witnessed a remarkable surge in its stock price, climbing 68% on the Paris exchange on Monday and then skyrocketing another 123% the following morning, reaching $4.77. However, by the close of the market on Tuesday, prices had tapered off to $3.79. This dramatic leap in share price comes in the wake of the United States suspending aid to Ukraine, raising fears about potential disruptions to critical capabilities, including internet access on the battlefield.

Impact of US Aid Suspension on Satellite Internet

The suspension of US aid has sent shockwaves through the defense and technology sectors, prompting European leaders to consider bolstering their defense spending. As discussions intensify about how to fill any gaps in Ukraine’s internet access, Eutelsat has emerged as a potential key player. A spokesperson for the company confirmed to Reuters that they are in talks with the European Union regarding how they might contribute to enhancing Ukraine’s internet connectivity.

Eutelsat’s Readiness to Deploy

In a statement to The Financial Times, Eutelsat indicated that it has equipment ready to be deployed swiftly in Ukraine to support the most critical missions and infrastructures. Despite the recent surge in stock prices, Eutelsat’s shares remain significantly below their historical highs, which peaked at around $33 in mid-2015. Over the past decade, the company’s stock has steadily declined, highlighting the volatility in the satellite communications market.

Starlink’s Role and Future in Ukraine

Elon Musk, a close ally of former President Donald Trump, has denied a Reuters report from late February that suggested US officials were considering cutting off Starlink services to Kyiv if Ukraine rejected a minerals deal with Washington. Currently, the US partially funds Ukraine’s Starlink subscription, while several European countries also contribute to the funding of numerous terminals. Notably, Poland, which finances about half of Ukraine’s Starlink terminals, has pledged to continue its support.

Comparing Eutelsat and Starlink

Through its partnership with OneWeb, Eutelsat is already providing some satellite services to Ukrainian government entities and institutions. However, it is essential to note that Eutelsat operates only about one-tenth of the satellites that Starlink has in orbit. Eutelsat’s constellation includes fewer than 700 satellites, while Starlink boasts over 7,000 satellites in its network. Eutelsat operates 35 geostationary satellites, which orbit at approximately 21,000 miles above Earth, alongside about 630 low-earth orbit satellites that circle at around 750 miles above the planet.

Future Prospects for Ukraine’s Internet Access

On Sunday, European Commission spokesperson Thomas Regnier informed reporters that regional leaders are contemplating granting Ukraine access to GovSatCom as an alternative to Starlink. This potential shift underscores the urgency of ensuring reliable internet access for Ukraine, especially in light of the ongoing conflict and the critical need for communication infrastructure.

As the situation evolves, the dynamics between Eutelsat and Starlink will be closely monitored, particularly regarding their respective roles in providing satellite internet access to Ukraine. With Eutelsat’s stock soaring and discussions about its contributions to Ukraine’s connectivity gaining momentum, the future of satellite communications in the region remains uncertain yet promising.

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