Eutelsat in Talks with EU to Provide Internet Access to Ukraine

Eutelsat in Talks with EU to Provide Internet Access to Ukraine

Eutelsat, a Franco-British satellite operator, is currently in discussions with the European Union to provide Ukraine with expanded internet access. This announcement follows a significant surge in Eutelsat’s stock price, driven by speculation that its OneWeb satellites could potentially replace Elon Musk’s Starlink network in Ukraine.

Over the past two days, Eutelsat shares have more than tripled in value, adding over €1 billion to the company’s market capitalization. This dramatic increase comes after a public disagreement between Ukrainian President Volodymyr Zelenskiy and former U.S. President Donald Trump, which cast doubt on the future of Starlink’s operations in Ukraine.

Following the dispute, leaders of major European economies pledged to increase defense spending, and the European Commission proposed an €800 billion defense plan for the region. An anonymous White House official then indicated that Trump would suspend all military aid to Ukraine, potentially creating an opportunity for Europe to increase its support.

A spokesperson for Eutelsat confirmed the company’s engagement with the EU, stating, “We are exchanging with the EU as to how we can contribute to enhancing Ukraine efforts.” The spokesperson also highlighted Eutelsat’s geostationary (GEO) satellite capacity, which is suitable for specific applications in Ukraine. Reports indicate that the EU had already been exploring Govsatcom as a possible alternative to Starlink.

Eutelsat operates 35 GEO satellites and, through its 2023 acquisition of OneWeb, has expanded its low earth orbit (LEO) network to include up to 600 satellites. OneWeb utilizes the same LEO technology as SpaceX’s Starlink, which currently provides internet access to 125 countries with its fleet of approximately 7,000 satellites.

According to Eutelsat, its network offers comparable coverage and latency to Starlink within Europe. The company further emphasized its active collaboration with European institutions and business partners to “enable the swift deployment of additional user terminals for critical missions and infrastructure.” On Monday, Eutelsat reiterated its commitment to strengthening European satellite independence and providing internet access to Ukraine.

ING analyst Jan Frederik Slijkerman noted the significance of Eutelsat’s recent statements, highlighting the company’s crucial role in European defense capabilities. Slijkerman also pointed out that despite the European Commission’s strong support for the planned IRIS² satellite constellation, the European satellite industry has faced challenges due to intense competition from U.S. companies.

In conclusion, Eutelsat’s discussions with the EU represent a potentially significant development in ensuring continued internet access for Ukraine. Leveraging its OneWeb LEO network, Eutelsat could provide a viable alternative to Starlink, bolstering European strategic autonomy in the process. The outcome of these negotiations will likely have lasting implications for the European satellite industry and the ongoing conflict in Ukraine.

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