Eutelsat shares jump 19% as Ukraine's Starlink restrictions stir SpaceX concerns
Eutelsat's stock rose 25% over five days after Kyiv accused SpaceX of cutting Starlink access, with Deutsche Bank calling it Europe's credible alternative.
At a glance
- Eutelsat shares rose 19% on Friday and 25% over five days after Ukraine said SpaceX restricted Starlink access.
- Zelenskyy said Starlink was switched off overnight, hindering drone interceptions; Musk said Starshield is U.S.-controlled.
- Eutelsat has over 600 satellites versus Starlink's 6,750-plus, and Deutsche Bank says it lacks Starlink's terminal scale.
Shares in the French satellite group Eutelsat climbed 19% on Friday and were up 25% over five days, after Ukraine accused Elon Musk's SpaceX of suddenly restricting its military access to satellite internet services.
Kyiv said the curbs on the military-grade Starlink and Starshield systems came without warning, cutting connectivity and limiting Ukraine's ability to defend itself against Russian attacks. President Volodymyr Zelenskyy said "Starlink was switched off" in the middle of the night, preventing Ukrainian drones from intercepting Russian strikes, and he linked the outage to civilian deaths. He said the problem was not only about attack but about defending lives, and that people were killed because too few interceptors, including Starlink-enabled ones, worked.
SpaceX CEO Elon Musk shifted blame toward the U.S. government, saying the Starshield systems are under the control of Washington and President Donald Trump.
A European alternative?
Deutsche Bank analysts said in a note on Thursday that this week's share move was further evidence "supporting the sovereign value of European Satellite networks," and that markets viewed Eutelsat as the credible Starlink alternative during the disruption. They cautioned, however, that while Eutelsat does offer a global low Earth orbit constellation, it lacks the scale to supply the number of terminals Starlink can provide, and said they would expect the shares to give up some of the gains.
Eutelsat consolidated with satellite internet provider OneWeb in 2023, aiming to challenge Starlink's market dominance. Company websites show Eutelsat has more than 600 satellites in orbit, compared with more than 6,750 for Starlink.
Russia presses infrastructure attacks
Ukraine's deputy minister for recovery, infrastructure and transport, Serhiy Derkach, told CNBC on Friday that Russia had stepped up attacks on Ukrainian infrastructure, taking advantage of the restrictions on military applications of Starlink by striking bridges, railway networks and border crossings. He said Moscow sees the moment as a chance to inflict even more pain and suffering on Ukraine's civilian infrastructure.
"We are definitely moving towards very harsh weeks and months and need our partners' support now more than ever," Derkach said, adding that Ukrainians already experience blackouts lasting four to 12 hours a day.
Source: CNBC Top News.
Questions and answers
- Why did Eutelsat shares rise this week?
- Eutelsat shares rose 19% on Friday and 25% over five days after Ukraine accused SpaceX of suddenly restricting its Starlink access. Deutsche Bank analysts said markets saw Eutelsat as the credible Starlink alternative.
- How many satellites does Eutelsat have compared with Starlink?
- Company websites show Eutelsat has more than 600 satellites in orbit, while Starlink has more than 6,750. Eutelsat merged with OneWeb in 2023 to challenge Starlink's market dominance.
- What did Zelenskyy and Musk say about the Starlink restrictions?
- Zelenskyy said Starlink was switched off in the middle of the night, stopping Ukrainian drones from intercepting attacks and contributing to civilian deaths. Musk shifted blame to the U.S. government, saying Starshield is under Washington and President Trump's control.
