Following SpaceX's imposition of speed restrictions on its Starlink and Starshield satellite internet services, which severely disrupted Ukraine's drone operations, Kyiv is actively seeking new, reliable communication alternatives. The country's Ministry of Defense announced on Thursday a significant letter of intent with Finnish technology powerhouses Nokia and satellite manufacturer ICEYE to jointly develop advanced defense and satellite communication capabilities.
President Volodymyr Zelenskyy underscored the critical importance of this initiative, stating, "Modern warfare has proven that reliable communications are a matter of national security. We must all rely on capabilities that we can control." This move reflects Ukraine's determination to establish communication networks free from external limitations.
A Ukrainian uses a Starlink satellite-internet communication system on a rooftop in Kyiv, Ukraine, March 11, 2025. Andrew Kravchenko | Bloomberg | Getty Images
In a related development, Zelenskyy also revealed a partnership with Norway earlier this week, aimed at jointly developing air defense and communications systems as another potential substitute for Starshield.
Industry experts, like Chad Anderson, founder and CEO of Space Capital, caution that a viable Starlink alternative could be "two to three years away," noting that "matching Starlink's scale is a longer road." SpaceX currently operates approximately 11,000 satellites in orbit. Replacing Starshield, specifically, might prove even more challenging, as Pentagon documents suggest SpaceX is the sole provider capable of meeting some of its needs through 2026, with launch capacity now a major bottleneck.
Despite the push for homegrown solutions, Ukraine continues to face Starlink restrictions, particularly for drones and aircraft exceeding 100 mph. The recent, unannounced changes to Starlink services have sparked controversy, with both the Trump administration and SpaceX CEO Elon Musk deflecting responsibility. President Donald Trump reportedly called Musk, urging him to lift the restrictions.
The alleged unilateral modifications by SpaceX have prompted U.S. lawmakers from both parties to demand a formal probe into Musk and the company. Jay Shambaugh, a senior fellow at Brookings, described these sudden changes as "part of a pattern since Trump came back into office of the United States acting as an unreliable ally," warning of potential long-term impacts on U.S. exports to countries wary of dependency.
While Starlink alternatives are emerging, including Amazon's Leo, France's Eutelsat, and Jeff Bezos' Blue Origin's yet-to-be-deployed TeraWave, a direct replacement for Starlink's widespread capabilities is still elusive. Globally, nations like China and the EU (with its IRIS² constellation, expected to launch its first satellites by 2029) are also investing in sovereign satellite communication systems.
Since Russia's 2022 invasion, venture and private equity investors have poured approximately $8 billion into Starlink alternatives, with about $3.9 billion specifically targeting competitors like Spacesail and China SatNet. Virginia Burger, a senior defense policy analyst with the Project on Government Oversight, highlights the urgent need for a reliable alternative, emphasizing that modern warfare increasingly relies on "unmanned systems, drone warfare and other systems that require high-speed internet."
— CNBC's Annie Palmer contributed reporting.
