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Ukraine Starlink clash boosts demand for rivals, CNBC reports
CNBC reports Ukraine’s dispute with SpaceX over Starshield speed limits has sped demand for other satellite internet services, while Amazon, Eutelsat and others still lag Starlink.
- New headline Was: “Musk's clash with Ukraine accelerates demand for Starlink alternatives. Few exist”
- Our desk filed its story
Ukraine’s dispute with SpaceX over speed limits on military-grade Starshield service has increased demand for other satellite internet systems, CNBC reported Thursday, while those rivals have not matched Starlink’s scale1.
Ukrainian officials on Oct. 14 said SpaceX and the United States had imposed the limits without warning, CNBC reported, affecting connectivity on drones and other aircraft moving faster than 100 miles per hour1. SpaceX describes Starshield as a secured government network that uses Starlink technology, according to CNBC1.
CNBC said The Wall Street Journal reported Tuesday that Elon Musk ordered the changes after discussing them with President Donald Trump; Trump said Wednesday he was not involved1. CNBC did not independently document the order in the article reviewed for this report1.
Robert Weissman, co-president of Public Citizen, told CNBC the situation raises antitrust and security concerns about control of a communications network1. Sen. John Cornyn, R-Texas, told CNBC he did not believe Musk would have acted without White House acquiescence and called the throttling “frankly shameful”1. Rep. Pramila Jayapal, D-Wash., called for an investigation, CNBC said1. Executives did not address the issue on SpaceX’s earnings call this week and were not asked, CNBC reported1.
Amazon’s Leo constellation has about 390 satellites in orbit and is not fully online, CNBC said1. Starlink has more than 11,000 satellites, according to astronomer Jonathan C. McDowell as cited by CNBC, and is live in 174 countries, SpaceX chief operating officer Gwynne Shotwell said on the earnings call1. Blue Origin’s TeraWave service is targeting a first satellite batch in the fourth quarter of 20271. France’s Eutelsat has more than 600 satellites; its shares rose 23% on Oct. 14 after reports of Starlink restrictions in Ukraine, CNBC said1. The European Union’s IRIS2 system is expected to begin launches in 20291.
Independent satellite consultant Christian Freiherr von der Ropp told CNBC most planned systems are unlikely to match Starlink on capacity, coverage, resilience or cost, and that Eutelsat terminals are poorly suited to battlefield use because of cost, size, weight and power1. He said SpaceX’s move away from commercial Falcon 9 rides could delay other constellations and raise launch costs1.
CNBC said Ukraine and European lawmakers this week moved to explore alternatives1. Ukrainian President Volodymyr Zelenskyy wrote Wednesday that he had discussed new satellite communications with Norwegian officials and Kongsberg, according to CNBC’s account of his post1. CNBC also recapped earlier disputes, including a 2023 biography’s account of a Crimea outage that Musk disputed, and wariness of Starlink in Canada, India and Taiwan1. SpaceX’s response to the latest Ukraine accusations was not quoted in the CNBC report1.
