European satellite operators surged on stock exchanges this week following warnings from Ukraine that SpaceX’s Starlink has applied restrictions to its military services. Investing.com reported that investors are pricing in potential shifts toward European alternatives as geopolitical friction grows.
France-based Eutelsat saw its shares jump more than 12% on the Paris exchange, while Luxembourg-headquartered SES also climbed over 5%. The market movement follows an initial 23.3% surge for Eutelsat on Wednesday, though the company gave up roughly half those gains during Thursday’s trading session.
Market analysts point to shifting political dynamics in Washington as a primary catalyst for the European rally. Aleksander Peterc, an analyst at Bernstein, noted that the upward trend ties directly into recent signals from the U.S. administration regarding its approach to the conflict.
Aleksander Peterc, an analyst at Bernstein, said, “이번 상승세는 최근 며칠간 형성된 미국 행정부의 친러시아·반우크라이나 기조와 관련이 있다고 본다. 미국 소유 위성 서비스 및 정보 공유에 대한 접근이 제한되거나 차단될 수 있다는 우려가 유럽 업체들을 잠재적 대안으로 다시 주목받게 만들고 있다” which translates to: “This rally is related to the pro-Russian and anti-Ukrainian stance that has formed in the U.S. administration over recent days. Concerns that access to U.S.-owned satellite services and intelligence sharing could be restricted or cut off have brought European players back into the spotlight as potential alternatives.”
Weighing the Scalability of European Networks
Eutelsat’s OneWeb low-Earth orbit network stands as the primary competitor to SpaceX in the space-based broadband sector. However, the operational scale between the two providers remains vastly disparate. While Starlink operates roughly 10,000 satellites targeting direct-to-consumer and enterprise markets, Eutelsat maintains a constellation of just over 600 spacecraft.
Industry experts caution that Ukrainian and allied users cannot easily pivot from Starlink to OneWeb without significant operational friction. Transitioning networks requires installing new user terminals and specialized ground infrastructure.
Christian Freiherr von der Ropp, an independent satellite consultant, outlined those logistical limits in an interview with Reuters. “원웹은 유용한 보완적 용량을 제공할 수 있지만, 이를 단순한 대체재로 보는 것은 상당한 운영상·인프라상의 제약을 간과하는 것” he stated, which translates to: “OneWeb is capable of providing useful supplementary capacity, but viewing it as a simple substitute is to overlook substantial operational and infrastructural constraints.”
Replacing Starlink or its military-specific variant, Starshield, demands large deployments of new user terminals. Furthermore, OneWeb’s smaller constellation size and different orbital architecture mean it may not suit certain tactical defense requirements.
Market Comparison of Major Satellite Operators
| Operator | Base Location | Constellation Size | Primary Network |
|---|---|---|---|
| SpaceX (Starlink) | United States | ~10,000 Satellites | Starlink / Starshield |
| Eutelsat (OneWeb) | France | ~600 Satellites | OneWeb LEO Network |
Investors continue to monitor European defense procurement and space policy for signs of sustained capital allocation.
