Nokia’s (NOK) collaboration with ICEYE reflects Europe’s accelerating trend toward building autonomous capabilities in secure communications. Facing changes in the external environment and rising internal demand, the two parties are centering on a low Earth orbit satellite network to provide mission-critical connectivity services to government and defense customers. At the same time, Nokia is using this to further expand its business beyond its core mobile network infrastructure, while ICEYE is stepping into a larger new market.
Nokia and satellite startup ICEYE plan to build a secure European communications system in orbit for defense and security affairs, seizing on the continent’s increasingly urgent demand for sovereign services. The partnership is expected to launch up to 50 low Earth orbit satellites per year starting in 2028, Nokia CEO Justin Hotard and ICEYE CEO Rafal Modrzewski said in a joint interview. For government customers, the two companies will provide ground terminals and satellites designed to work with land-based networks, keeping armed forces, first responders and ministries connected during disruptions.
The European Union said in August that it is expanding its IRIS² sovereign satellite program, aiming to create a unified service that does not rely on foreign suppliers.
This push comes as Elon Musk’s Starlink, which operates the world’s largest satellite communications constellation, has said it may challenge U.S. telecom operators by directly competing for customers. Some of Nokia’s ground operator customers in the United States and Europe have begun discussing forming joint ventures to bid for satellite spectrum in an upcoming auction, seeking to retain control over this emerging connectivity layer. Nokia is expanding beyond its core mobile network infrastructure, investing in satellites and data center equipment. The company’s focus on artificial intelligence infrastructure, combined with an investment from AI chip developer Nvidia (NVDA), has driven its stock price up about 65% this year.
ICEYE belongs to a group of emerging space companies benefiting from Europe’s sovereignty push and growing demand for defense-related services. The company raised 450 million euros in June at a valuation of 10 billion euros. Earlier this month, it signed a letter of intent with Polish state-owned defense manufacturer PGZ SA to build a Polish military satellite communications system. Modrzewski said this is one of the demand signals that prompted the development.
