Elon Musk’s Starlink remains the best option despite geopolitical shifts: DB

Published 13/03/2025, 12:50
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Investing.com -- Recent analysis by Deutsche Bank (ETR:DBKGn) indicates that geopolitical developments are prompting a significant shift in the satellite communications (satcom) landscape, with Starlink maintaining its lead position. Amidst these changes, competitors and suppliers in the sector may see increased interest as viable alternatives to Starlink emerge.

Starlink, operated by SpaceX, has been heavily utilized in Ukraine, with over 70,000 active terminals estimated to be in use. This figure marks a substantial increase from the 42,000 terminals reported by the Ukrainian government back in 2023.

Poland has contributed over 24,000 terminals since the onset of the war through the end of 2024, with an additional 5,000 expected. Poland’s financial commitment to this support is around $50 million annually. Germany has also provided 10,000 terminals to Ukraine.

Contrastingly, OneWeb has only a few thousand active terminals in Ukraine. Eutelsat’s CEO, in a recent interview with Bloomberg, confirmed this relatively low number and emphasized the need for more financial and logistical support for Eutelsat to significantly increase its presence in Ukraine.

The analysis suggests that the growing urgency among sovereign nations to find alternative satcom options could benefit other players in the market. While Starlink’s dominance is acknowledged, the geopolitical climate could lead to a more diversified field with increased opportunities for companies like Eutelsat and OneWeb.

The shift in dynamics is partly attributed to the ongoing conflict in Ukraine, which has highlighted the strategic importance of satellite communications in modern warfare and crisis management. The reliance on Starlink services in Ukraine showcases the system’s capabilities but also underscores the potential demand for alternative providers.

The insights from Deutsche Bank were initially shared during their Global Space Summit in November, where signs of a changing satcom landscape were already becoming evident. As the situation continues to evolve, the market will be watching closely to see how Starlink and its competitors adapt and respond to the new geopolitical realities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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