The disruption stems from SpaceX, the parent company of Starlink, which currently leads the global space-based connectivity market with more than 11,000 satellites, according to data from the American Enterprise Institute. Its nearest major competitor, France-based Eutelsat, operates a network of more than 600 satellites through its OneWeb service. Starlink, which announced this summer that it had reached 12 million customers across more than 160 countries and territories, holds a significant market advantage that has made it difficult for European nations to establish independent capabilities.
In response to the recent service changes, Finnish firms ICEYE and Nokia announced an agreement with Ukraine’s defense ministry to explore “sovereign satellite communications.” An ICEYE spokesperson told Axios that the duo’s initial satellites are expected to launch in 2028. Ukrainian President Volodymyr Zelenskyy stated in the announcement that reliable communications are a matter of national security, adding, “We must all rely on capabilities that we can control.”
The restrictions on Starlink follow reports that Elon Musk ordered a slowdown of the service in Ukraine. Musk responded on Oct. 24 that Ukraine “violated Starlink terms of service” by using the platform for offensive drone strikes, noting that the alleged “loophole” has since been closed. While the Wall Street Journal reported that the White House was involved in the decision, President Trump denied this involvement. The incident has drawn scrutiny regarding the risks of relying on a single commercial entity for military logistics.
Eutelsat CEO Jean-François Fallacher highlighted the governance differences between his company and SpaceX. In a French television interview, he stated that any decision to cut off services in a country would be made by a board of directors under a traditional European governance system, rather than by a single CEO. He confirmed that Eutelsat’s service is already available in Ukraine and can be used for drones. Following the news of the Starlink throttling, Eutelsat shares spiked, reflecting investor interest in alternative providers.
Rebecca Wasser, defense lead at Bloomberg Economics, described the incident as a “loss of faith” in both U.S. security commitments and the ability of U.S. companies to provide key services. She predicted a continued push toward European sovereign capability in space-based communications. Senator Richard Blumenthal (D-Conn.) wrote to Defense Secretary Pete Hegseth, stating that the events in Ukraine demonstrate how a single point of control can be turned against the forces that depend on it, marking a shift where satellite communications are viewed as a core combat function rather than a support role.
