EUTELSAT announced it has complete coverage of Ukrainian territory. The satellite operator is prepared to replace Starlink if and when the Russia-backed Musk-Trump regime breaks its promises
The EU Defence White Paper - Read Throughs For ETL
19.03.2025 The EU Defence White Paper makes multiple references to secure communications, space assets, and satellite systems, particularly in the context of military mobility, intelligence,
surveillance, and cybersecurity.
Key Read-Through for Eutelsat (ETL) Investors: 1. Increased European Defence Spending - The paper outlines a "once-in-a-generation surge" in defence investment, with a proposed €150 billion SAFE fund to support military readiness,
infrastructure, and strategic capabilities, including space-based communications. 2. Strategic Enablers & Critical Infrastructure Protection - The document explicitly highlights secure satellite communications as a key enabler for military readiness, alongside cyber defence and intelligence gathering. This suggests the EU will prioritise domestic sovereign satellite capabilities
over reliance on non-European providers like Starlink. 3. Military Mobility & Secure Communications - The EU plans to integrate space-based navigation, observation, and communications into its military mobility strategy.
This reinforces the need for a
strong European LEO operator, a role that Eutelsat-OneWeb could fill. 4. Ukraine & Secure Communications - The EU is exploring greater access to European space assets for Ukraine, which aligns with ETL's recent discussions on providing alternatives to Starlink. If funding is allocated, ETL could secure multi-year government contracts for secure military and
governmental broadband. 5. Industrial Consolidation & Funding - The White Paper stresses the need for EU-wide defence supply chains and common procurements, reducing dependence on US/Chinese alternatives. If the EU follows through with subsidies or procurement mandates, this could lead to direct funding for
Eutelsat-OneWeb to accelerate LEO deployment. 6. Potential for New Contracts & Valuation Upside - If the EU commits to fully backing a European sovereign satellite operator, Eutelsat could be in line for significant government orders, improving its
financial outlook and de-risking its debt burden.
Investor Implications:
• Eutelsat's role in European sovereign space infrastructure is increasingly strategic.
• Likely tailwinds from European defence funding for satellite services.
• Potential market rerating if the EU commits to LEO investment.
• Government-backed contracts could improve financial stability and reduce leverage risks.
Conclusion: The European defence pivot could be a game-changer for Eutelsat, shifting its business mix towards high-margin, government-backed contracts. Investors should watch for further EU announcements on
sovereign satellite procurement, as this could drive further re-rating potential in ETL's share price.