French satellite operator Eutelsat rallied after restrictions on SpaceX’s military satellite network Starshield in Ukraine triggered fresh friction between the U.S. and Ukraine.
According to Yahoo Finance data, Eutelsat closed at 1.766 euros in Paris on Oct. 16, up about 17% on the day. CNBC reported that the stock was up 25% over the past five days.
Ukraine says Starlink was cut off overnight
Ukrainian officials said on Tuesday that Starlink terminals moving at more than 160 kilometers per hour could not connect. Ukraine uses those connections to track and intercept incoming targets, and Kyiv said SpaceX gave no advance notice.
Ukrainian President Volodymyr Zelensky said in an interview with British host Piers Morgan that "Starlink was switched off." He said the restriction happened in the middle of the night, leaving Ukraine unable to intercept some Russian drones, and added that "people died because of this."
Musk says the limits are decided by the U.S. military and president
In a post on X on Oct. 14, Elon Musk said the Starshield system is owned and controlled by the U.S. government, adding that "any restrictions on speed or use are determined by the U.S. military and, ultimately, by the U.S. president."
Musk also said Starlink is SpaceX’s commercial service and can only be used for civilian or defensive purposes, not for offensive military operations. CNBC said the White House and the Pentagon did not immediately respond to requests for comment.
Deutsche Bank says Eutelsat lacks the scale
Deutsche Bank analysts said in a Thursday note that Eutelsat’s rally this week showed the "sovereign value" of European satellite networks, with the market viewing the company as a "credible alternative" to Starlink.
The bank also said that while Eutelsat offers a global low-Earth orbit satellite network, it does not have enough scale to provide as many terminals as Starlink. "We expect the shares to give back some of the gains," the analysts wrote.
Post-OneWeb merger, the gap with Starlink remains wide
Eutelsat merged with satellite network operator OneWeb in 2023 in an effort to challenge Starlink’s dominance. Based on information from the companies’ websites, Eutelsat currently has more than 600 satellites in orbit, while Starlink has more than 6,750.
Ukrainian official says Russia stepped up attacks
Serhiy Derkach, Ukraine’s deputy minister for reconstruction, infrastructure and transport, told CNBC on Friday that Russia had stepped up attacks on Ukraine’s bridges, railways and border crossings after military uses of Starlink were restricted.
"The U.S. is limiting Starlink’s use on the battlefield, and Russia feels this is their moment," he said. Derkach added that people in Ukraine are currently experiencing power outages of four to 12 hours a day.