Eutelsat soars after Ukraine reports Starlink speed cap

Shares in French satellite operator Eutelsat soared on Wednesday, October 14, after Ukraine said SpaceX had restricted Starlink's military-grade service. Investors bet that European providers could gain from the growing strain between Washington and Kyiv, Reuters reported. Analysts and officials warned that the rally doesn't change the situation on the ground. According to Reuters, Europe has no ready-made alternative that Ukrainian soldiers could attach to their drones.reuters.com+1

Drone missions disrupted

Ukrainian officials said the Starshield service cut out when terminals moved at high speed, which hampered attack drones and air defense. "Tonight SpaceX introduced a speed limit for the Starlink terminals in motion," presidential adviser Sergiy Beskrestnov said. He added that the limit applies above 160 kilometers per hour and that some missions were canceled. Elon Musk wrote on X that Starshield is owned and controlled by the US government, and that any limits on its speed or use are up to the US military and the president.rmb.reuters.com+2

The disruption followed a new low in relations between President Donald Trump and Kyiv. Separately, President Volodymyr Zelenskiy said Ukraine had gone two nights without a warning from its partners about Russian ballistic missile attacks.rmb.reuters.com

Investors pile into European satellites

Eutelsat's shares had their biggest one-day gain in 16 months. Luxembourg-based rival SES also rose. Bernstein analyst Aleksander Peterc linked the rally to the US administration's stance, which has put "European providers back in the spotlight as potential alternatives".globalbankingandfinance.com+1

Independent satellite consultant Christian Freiherr von der Ropp said Eutelsat's OneWeb network isn't well suited to wartime use. He cited capacity limits and the "cost, weight, bulk and power consumption of its user terminals." He also said switching would mean replacing thousands of proprietary Starlink terminals.rmb.reuters.com

A long road to sovereignty

European Defence Commissioner Andrius Kubilius said Europe is "quite dependent on American space capabilities." He pointed to the planned IRIS² constellation as the answer, but that project is still years from operating. The European Commission is discussing Ukraine's access to the EU's Govsatcom system and plans to add commercial capacity in early 2027. IRIS² is due to be fully operational in 2029.euperspectives.eu+1

Bohdan Sas, co-founder of Ukrainian startup Buntar Aerospace, said the episode shows "you can't rely solely on one solution that can be switched off." He added that sovereign capability means "you are not subject to somebody's mood today".rmb.reuters.com