US Allies Seek Alternatives to Starlink After Musk Limits Ukraine's Access

what happened

Elon Musk's abrupt decision to limit Ukraine's use of the Starlink network, which is vital to the country's defense against Russia's invasion, is pushing US allies to step up work on their own alternatives. Europeans are wary of depending on a system that gives Musk the power to switch off a critical network without consultation. Polish Foreign Minister Radoslaw Sikorski wrote on X that playing politics with products damages a brand. Republican Senator Kevin Cramer said the US should not depend on one system, one person and one company.

There is no near-term replacement. The only European operator able to work in low Earth orbit, where SpaceX dominates, is OneWeb, part of France's Eutelsat, which runs about 650 satellites against more than 11,000 for Starlink. Switching would require replacing thousands of terminals because SpaceX uses proprietary technology. Ukraine and Finland agreed to join a planned network run by Iceye and Nokia, but the first satellites are not due until 2028, according to WSJ.

why it matters

For markets, the signal matters more than the immediate numbers. Dependence on SpaceX, valued at roughly $2 trillion, is becoming a political risk, while government spending in Europe and Canada could benefit satellite firms such as Eutelsat and Airbus. Launch timelines are long, so the effect will likely be gradual.

market impact

Eutelsat, Airbus: rising government spending on satellite networks supports the sector, though deployment timelines are long

tags

instruments