Iceye and Nokia target government satellite communications market
Thursday 1st October 2026 on 17:45 in
Finland
Finnish companies Iceye and Nokia are developing a low-Earth-orbit satellite communications system for government customers, with the first satellites scheduled for launch in 2028, Yle reports. The project aims to provide fast, targeted connections to priority regions for defence, border security and disaster response.
Iceye founder Pekka Laurila told Yle in Rovaniemi that existing government customers had asked the company to provide communications alongside its sovereign systems for remote sensing and data collection.
The system could help Europe reduce its reliance on US-based Starlink, according to experts interviewed by Yle. Aalto University professor Jaan Praks said Iceye understands European governments’ needs and the geopolitical environment in which the market operates.
Starlink, operated by US company SpaceX, is difficult to challenge on price because of its cost efficiency, said Marko Höyhtyä, a research professor specialising in satellite communications at the VTT Technical Research Centre of Finland. He said independence from the United States could matter more than price, especially at the outset.
Ukraine uses Starlink during the war, but cannot use the system in Russian territory because SpaceX chief executive Elon Musk does not allow it, the article said. The European Union is also developing its own satellite system, IRIS², for official use, but it is not expected to be operational until around the turn of the next decade.
Satellite communications are a new field for Nokia, although the company has conducted research into non-terrestrial networks and taken part in VTT projects. Höyhtyä said Nokia has relevant expertise and expressed hope that much of the development work would take place in Finland and create jobs.
Experts cited by Yle said the project faces intense competition and will need to establish a market foothold quickly to become viable over the long term. They also pointed to the need for lightweight, portable and easy-to-use user equipment. Iceye and Nokia are not currently targeting consumers.