Eutelsat Shares Skyrocket Amid US Aid Suspension to Ukraine

Eutelsat, a French satellite firm, has recently emerged as a formidable competitor to Elon Musk’s Starlink, witnessing a remarkable surge in its stock value. On Monday, shares of Eutelsat soared by 68% on the Paris exchange, followed by an astonishing 123% increase the next morning, reaching $4.77. However, by the market close on Tuesday, prices had tapered off to $3.79. This dramatic leap in share price coincides with the recent suspension of US aid to Ukraine, raising concerns about potential disruptions to critical capabilities, including internet access on the battlefield.

European Leaders Rally for Enhanced Defense Spending

As the geopolitical landscape shifts, European leaders are stepping up their defense spending and exploring ways to fill any gaps in Ukraine’s internet access. Eutelsat has positioned itself at the forefront of this initiative. A spokesperson for the company informed Reuters that discussions are underway with the European Union regarding how Eutelsat can contribute to enhancing Ukraine’s internet capabilities.

Rapid Deployment of Satellite Equipment

In a statement to The Financial Times, Eutelsat confirmed that it has equipment ready for rapid deployment in Ukraine to support critical missions and infrastructure. This proactive approach underscores the company’s commitment to providing essential services during a time of crisis.

Stock Performance and Historical Context

Despite the impressive gains 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, while promising, highlights the challenges the company faces in regaining its former market position.

Starlink’s Dominance and Eutelsat’s Position

Elon Musk, a close ally of former President Donald Trump, has been at the center of discussions regarding satellite internet access in Ukraine. Reports from late February indicated 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, European nations also contribute to the funding of many terminals. Notably, Poland, which finances about half of Ukraine’s Starlink terminals, has committed to continuing its support.

Through its partnership with OneWeb, Eutelsat is already providing some satellite services to Ukrainian government institutions. However, it is important to note that Eutelsat’s satellite constellation is significantly smaller than that of Starlink. Eutelsat operates fewer than 700 satellites, while Starlink boasts over 7,000. The European company has 35 geostationary satellites orbiting at 21,000 miles above Earth, alongside approximately 630 low-earth orbit satellites, which operate at around 750 miles above the planet.

Alternative Solutions for Ukraine’s Internet Access

On Sunday, European Commission spokesperson Thomas Regnier revealed that regional leaders are considering granting Ukraine access to GovSatCom as an alternative solution for satellite communications. This potential collaboration highlights the ongoing efforts to ensure that Ukraine maintains robust internet connectivity amid the evolving geopolitical situation.

As the situation develops, Eutelsat’s role in providing internet access to Ukraine could become increasingly vital. The company’s swift response and commitment to supporting Ukraine’s needs may position it as a key player in the European satellite market, challenging the dominance of established players like Starlink. For more detailed information, you can read the original article here.