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Ukraine signs Nokia, ICEYE letter of intent for satellite communications

CNBC reported Ukraine's Defense Ministry signed a Thursday letter of intent with Nokia and ICEYE after Starlink speed limits in Ukraine, which Kyiv says still apply.

Ukraine's Ministry of Defense said Thursday it signed a letter of intent with Finnish companies Nokia and ICEYE to develop defense and satellite communication capabilities, CNBC reported1.

The move follows restrictions SpaceX placed on Starlink and Starshield service in Ukraine that, according to CNBC, caused fast-moving drones to lose connectivity1. Ukrainian officials said as of Friday the country was still seeing limits that cut connectivity for drones or other aircraft traveling faster than 100 miles per hour1.

President Volodymyr Zelenskyy said in a statement that modern warfare has shown reliable communications are a national-security matter and that Ukraine must rely on capabilities it can control1.

CNBC said both the Trump administration and SpaceX chief executive Elon Musk have declined to take responsibility for unannounced Starlink service changes Ukraine reported more than a week ago1. President Donald Trump told reporters at the White House on Friday that he would call on Musk to lift the restrictions1. SpaceX executives did not respond to a request for comment1.

U.S. lawmakers from both parties are calling for a formal probe of Musk and SpaceX over alleged unilateral changes to services in Ukraine, CNBC reported1. Jay Shambaugh of Brookings and George Washington University told CNBC the sudden changes fit a pattern of the United States acting as an unreliable ally and could, over time, reduce U.S. exports to the European Union if countries seek to avoid dependence on systems Washington can cut off1.

Rivals to Starlink cited by CNBC include Amazon's Leo network, France's Eutelsat, and Blue Origin's planned TeraWave service, which has not yet deployed satellites1. The European Union is building the IRIS2 constellation, with first launches not expected until 20291. Virginia Burger of the Project on Government Oversight told CNBC there is no drop-in replacement for Starlink as combat shifts toward unmanned systems that need high-speed internet1.

Since Russia's 2022 invasion of Ukraine, investors have put about $8 billion into Starlink and Starshield alternatives, according to Space Capital CEO Chad Anderson as cited by CNBC, including about $3.9 billion for potential Starlink competitors, mostly Spacesail and China SatNet1.

Sources

  1. CNBCIn hunt for Starlink alternative, Ukraine partners with Nokia and satellite maker ICEYE