Franco-British satellite operator Eutelsat , a rival to Starlink, is among companies that are in talks with the Italian government to provide systems for secure satellite communications, two sources close to the matter told Reuters.
Suggestions that Ukraine could lose access to Elon Musk's Starlink satellite internet system, which has been vital in maintaining its military communications as it fights Russia's invasion, have focused investor interest on Starlink's smaller European rival Eutelsat.
The US' fraying relationship with Ukraine is boosting European satellite firm Eutelsat. Its share price tripled amid fears that Ukraine could face disruptions to its Starlink access.
Shares in Eutelsat surged more than 120% early on Tuesday, extending gains after rising 68% on Monday, as investors bet on OneWeb satellites to be the European alternative to Starlink in Ukraine.
Shares of French satellite service provider Eutelsat plunged on Friday after the company flagged lower cashflow from its geostationary equatorial orbit (GEO) satellites and forecast lower investments as competition from Elon Musk's Starlink mounts.
Eutelsat continues to struggle against secular headwinds. An underwhelming quarter indicates more downside to come. Funding risks also loom large.
Eutelsat , the world's third-biggest satellite operator by revenue, launched 20 satellites for its communications network on Sunday, using Elon Musk's SpaceX in its first move since the merger of two European companies last year.