Business

Starlink’s competitor is negotiating to enter the Ukrainian market: can it replace Musk’s Internet?

French satellite operator Eutelsat is holding talks with European governments to provide Ukraine with additional satellite communications capabilities. Investors see the company as a potential substitute for Elon Musk’s Starlink amid growing concerns about the stability of the American system in the country. This is reported by Komersant ukrainskyi with reference to the Financial Times.

Eutelsat, which owns the OneWeb satellite network, one of Starlink’s competitors, said it is actively cooperating with European institutions and business partners. The company noted that it has equipment that can be quickly deployed in Ukraine to provide connectivity for critical missions and critical infrastructure.

Ukraine relies heavily on Starlink in the military sphere, but the suspension of US military aid has raised questions about the future of this connection. At the same time, European countries are looking for alternative ways to support Kyiv, which increases interest in OneWeb.

Amid this news, Eutelsat shares rose sharply – on Monday they went up by 30%, and on Tuesday they added another 80%. Investors see the company as a promising player that could partially replace Starlink in the region.

Eutelsat is discussing with European governments the option of using a combination of its two satellite constellations – the OneWeb system operating at an altitude of 1,200 km and the Geo geostationary satellites located at 35,000 km. This could significantly improve connectivity in Ukraine and the Black Sea region.

Currently, OneWeb already provides satellite services in Ukraine through a German distributor, but its technology is inferior to Starlink. Elon Musk’s company has more than 7,000 satellites in orbit, while OneWeb has only about 700. In addition, OneWeb’s terminals, which are targeted at businesses and government agencies, are larger and less mobile than Starlink’s devices.

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Starlink in Ukraine: role, importance and scandals around Elon Musk

The Starlink satellite internet system, developed by Elon Musk’s SpaceX, became critically important for Ukraine after the start of Russia’s full-scale invasion in 2022. The system has provided stable communication for the military, government agencies, volunteers, and civilians, especially in areas of destroyed infrastructure or near the front line.

The first Starlink terminals began arriving in Ukraine in March 2022, largely thanks to international support and funding from the United States and European countries. At that time, satellite internet was perhaps the only stable alternative to traditional networks that were constantly under attack from Russia.

Strategic importance and military aspect

The Armed Forces of Ukraine actively use Starlink to coordinate operations, control drones, and provide communication between units. Operational access to satellite Internet has significantly increased the effectiveness of combat operations, allowing the military to quickly transfer data and avoid an information vacuum even in the hottest spots of the frontline.

However, it is the military use of Starlink that has led to numerous discussions and scandals related to SpaceX’s policy towards Ukraine.

Scandals and accusations of blocking communications

In the fall of 2022, there were first reports that Elon Musk had personally ordered to restrict access to Starlink in certain areas, including over the occupied Crimea and the Black Sea coastal zone. According to investigations, the Ukrainian military was planning an attack on the Russian fleet in Sevastopol using naval drones, but the operation had to be canceled due to the sudden disconnection of Starlink.

This situation caused outrage in Ukrainian society and among Ukraine’s allies. Musk subsequently stated that he did not want Starlink to be “used to escalate the war” and that SpaceX did not authorize the system to be used to strike Russian targets.

In 2023, journalists and U.S. senators expressed concern about Musk’s excessive influence on the situation in Ukraine. The head of SpaceX was actually able to determine where and when the Ukrainian military could use Starlink, which posed risks to the country’s security and independence in the field of communications.

In addition, in 2024, there were new reports of Starlink being disconnected in some parts of the frontline, which complicated the conduct of hostilities and communication between the Ukrainian military.

The future of Starlink in Ukraine

Despite the scandals and concerns about Musk’s policies, Starlink remains a key element of Ukrainian defense. However, amid possible risks, Kyiv and its allies have begun to look for alternative satellite communications options, including through cooperation with OneWeb, Eutelsat, and other European operators.

Ukraine is also working to develop its own satellite technologies to reduce its dependence on private companies that can make political decisions that affect the security of the state.