Nokia (NOK.US) partners with ICEYE to build Europe's sovereign satellite network: Up to 50 satellites launched annually starting from 2028

According to Golden Ten Data, Nokia (NOK.US) and satellite startup ICEYE plan to build a secure European communications system in orbit for defense and security purposes, aiming to seize the continent's growing demand for sovereign services.

This collaboration is expected to launch up to 50 low Earth orbit (LEO) satellites annually starting in 2028, said Nokia CEO Justin Hotard and ICEYE CEO Rafal Modrzewski in a joint interview. The two companies will provide ground terminals and satellites for government clients, designed to work with terrestrial networks to keep armed forces, emergency personnel, and various ministries connected in case of disruptions.

Hotard stated: "Transitioning from pure radio and mobile communications to sensing and critical mission connectivity is an incredible opportunity." He added that communications now increasingly involve observation and detection tasks.

After strained relations with the United States during the Trump administration, European governments are working to build their own satellite capabilities. In August, the European Union said it was expanding its IRIS² sovereign satellite program, aiming to create unified services independent from foreign suppliers.

Driving this push is the fact that Starlink, owned by Elon Musk and operating the world’s largest satellite communications constellation, has previously indicated it could challenge U.S. telecom operators by directly competing for customers. Some of Nokia’s ground operator clients in the U.S. and Europe have begun discussions to form joint ventures to bid for satellite spectrum in an upcoming auction, striving to maintain control over this emerging layer of connectivity.

Nokia is expanding its business beyond its core mobile network infrastructure, investing in satellite and data center equipment. The company's focus on artificial intelligence infrastructure, combined with investment from AI chip developer Nvidia (NVDA.US), has pushed its share price up by about 65% so far this year.

Modrzewski said: "This is probably one of the biggest shifts in ICEYE's overall strategy." He added that ICEYE is entering a new market, which he estimates is larger than the intelligence satellite services market.

ICEYE is among a group of emerging space companies benefiting from Europe’s push for sovereignty and the growing demand for defense-related services. In June, the company raised €450 million ($511 million) at a valuation of €10 billion.

Earlier this month, the company 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 signals of demand driving this development."