Eutelsat shares rise after Ukraine’s Starlink issues

In Short:
– Eutelsat shares rose significantly after Ukraine reported SpaceX limited Starlink’s military-grade service.
– Ukraine seeks independent satellite solutions while acknowledging the long wait for the EU’s IRIS² constellation.

Shares in French satellite operator Eutelsat surged, following reports that Ukraine claimed SpaceX restricted Starlink’s military-grade service.Investors speculated that this shift could benefit European satellite providers amid escalating tensions between the U.S. and Ukraine.

Starlink limitations

Ukrainian officials reported that the Starshield service experienced limitations when terminals operated at high speeds, affecting drone operations.

Presidential adviser Sergiy Beskrestnov noted that the speed cap impacts speeds over 160 kilometers per hour, leading to mission cancellations.

Elon Musk indicated on X that the Starshield service is under the control of the U.S. government, affirming that speed restrictions are determined by the military and the president.

Reports also highlighted strained relations between President Trump and Kyiv amidst these developments.

Additionally, President Zelenskiy mentioned Ukraine faced two nights without warnings concerning Russian missile attacks.

Eutelsat’s shares experienced their largest one-day increase in 16 months, with Luxembourg-based rival SES also seeing an uptick.

Analyst Aleksander Peterc attributed this rally to the U.S. administration’s stance, bringing European providers into focus as alternatives.

Independent consultant Christian Freiherr von der Ropp cautioned that Eutelsat’s OneWeb is ill-suited for wartime use due to capacity and technical limitations.

A long-term solution appears distant, as European Defence Commissioner Andrius Kubilius acknowledged Europe’s dependence on U.S. space capabilities.

He mentioned the IRIS² satellite constellation as a future solution, but that it remains years away from operational status.

Future capabilities

Bohdan Sas, co-founder of Buntar Aerospace, stressed the need for independent solutions that are not contingent on external control.

Ukraine continues to explore various alternatives, including partnerships with countries like France, to secure additional capabilities.

However, Zelenskiy confirmed that replacing Starlink is not an immediate objective.

The EU’s planned satellite networks, including IRIS², are not expected to launch until 2029, leaving a gap for immediate needs.

Ongoing discussions about lifting speed limitations indicate Ukraine’s push for improved military communications.