Ukrainian officials accused SpaceX of suddenly imposing speed limits on Starshield, a secured satellite network for government entities that leverages Starlink technology, on Oct. 14. The restrictions cut wireless internet connectivity for drones and aircraft moving at speeds over 100 miles per hour, a capability Ukrainian forces have relied on during the war against Russia.
The move has highlighted the strategic risks of depending on a single provider for critical communications. A senior Ukrainian commander told The New York Times that the restrictions cost his unit more than $1 million and delayed missions by three days. While SpaceX executives did not address the issue during the company's earnings call this week, The Wall Street Journal reported that Elon Musk individually ordered the changes and discussed them with President Donald Trump before implementation. Trump stated on Wednesday that he was not involved.
Critics argue the incident exposes dangerous concentration of power in private hands. Robert Weissman, co-president of Public Citizen, described the situation as an extreme danger that raises antitrust and security concerns. He noted that Musk has the ability to close down communications in a national security context, a power he argued no single person should hold. The disruptions have prompted a bipartisan group of U.S. lawmakers to call for an investigation into Musk's actions, including potential testimony under oath.
Sen. John Cornyn, R-Texas, told CNBC he does not believe Musk acted without at least the acquiescence of the White House, calling the service throttling shameful. Rep. Pramila Jayapal, D-Wash., wrote on social media that no billionaire with massive government contracts should have the power to unilaterally shut down communications during a war critical to the U.S. and Ukraine.
Governments and companies seeking alternatives to Starlink face significant hurdles. Amazon's Leo satellite constellation is seven years in the making but has yet to fully come online, with only 390 satellites in orbit compared to Starlink's more than 11,000. Starlink connectivity is live in 174 countries, according to SpaceX COO Gwynne Shotwell. Blue Origin's TeraWave service targets its first satellite deployment for the fourth quarter of 2027, while France's Eutelsat has more than 600 satellites in orbit. Eutelsat stock surged 23% on Oct. 14 following reports of the Starlink restrictions.
Christian Freiherr von der Ropp, an independent satellite consultant, said most planned systems are unlikely to match Starlink in capacity, coverage, resilience or cost. He added that Eutelsat terminals are particularly unsuitable for battlefield use due to their size and power requirements. The EU is building the IRIS2 system, but first launches are not expected until 2029.
SpaceX also controls a dominant rocket launch business, which has carried satellites for many of its competitors. The company is phasing out commercial rides on its Falcon 9 rocket while developing its Starship vehicle. Von der Ropp warned that new constellations could face substantial delays and higher launch costs as a result.
Ukraine and European lawmakers have moved to explore alternatives, framing the issue as a matter of national security. President Volodymyr Zelenskyy wrote on X that he met with Norwegian officials and defense company Kongsberg to discuss launching work on new satellite communication capabilities. Relations between Musk and Ukrainian officials have soured over the years, with Musk previously arguing that Ukraine should strike a truce with Russia and cede ownership of Crimea.