The New Zealand Defence Force (NZDF) has moved closer to purchasing satellite communications services from Elon Musk's SpaceX, after completing a trial of its Starshield system and finding it showed 'potential utility' for military operations. The move comes amid growing international concern over reliance on privately-owned space networks, after Ukraine's access to Starshield was reduced last month, jeopardising combat and air defence missions.
The NZDF told RNZ on Friday that a six-month trial of Starshield had been completed and showed potential utility. Any subsequent satellite communications acquisitions would follow normal processes, it said. The trial was purchased through the US government's Foreign Military Sales (FMS) system and required former Defence Minister Judith Collins to sign an indemnity shielding the US from damages claims.
Starshield, which entered service in 2024, offers higher encryption and protection against 'counterspace' attacks compared to the civilian Starlink network that Ukraine's military has relied on since 2022. The NZDF already uses Starlink. Documents released under the Official Information Act show Defence told Collins that without Starshield, the NZDF would have fewer satellite communications options for operations, and that it could not procure the deliverables from any other supplier. Any loss under the indemnity was unlikely to exceed $10 million, Defence said.
Internal emails from June 2024 reveal the NZDF's urgency. A capability manager asked an FMS manager: 'Is this something that you can assist us with from there? I apologise for jumping around in subjects, but when you are as hollow an organisation as we are, we have to wear many hats throughout the day.' Another email asked: 'Is there a fast track option?' Military bosses have repeatedly described the NZDF as hollowed out since the pandemic; the army was still 700 personnel short in critical leadership and instructor ranks at mid-2026.
The Starshield trial was conducted amid controversy. Last month, Ukraine's access to the system was reduced, with critics warning of the risk of relying on privately-owned systems in war or crisis. In Europe, the incident spooked governments about depending on US technology. Germany ruled out buying Palantir's Maven Smart System, stating that letting a private foreign contractor access national military databases was completely 'out of the question' and 'inconceivable'.
The US Space Force, which counts on commercial partnerships, said it was 'counting on partnerships with the commercial space industry to help it prevail against aggressive adversaries'. It rates Russia an acute threat and China a major threat. Reuters reports that the Pentagon is Starshield's largest customer, having spent billions on Starlink and Starshield. New Zealand is almost entirely reliant on its Five Eyes partners for space infrastructure, and has not joined the AUKUS Pillar Two arrangement that removes some barriers with Australia, the UK and US.
Speed has been central to military procurement on both sides of the Pacific. The US Space Force told companies: 'The fastest way to get traction is to show how your idea accelerates warfighting outcomes across the architecture.' The NZDF's industrial strategy aims to 'deliver capability faster' by buying minimum viable products and partnering with large defence contractors. However, a big difference is that while the Pentagon has companies flocking to it, New Zealand must go to them, as it did with SpaceX and Starshield.
Analysis
Why This Matters
- The NZDF's move towards Starshield locks New Zealand into a private, US-controlled satellite network for secret communications, raising questions about sovereignty and reliability in a crisis.
- The Ukraine incident demonstrated that access to such systems can be disrupted, potentially affecting military operations. Other nations are now re-evaluating their reliance on commercial US space technology.
- The decision reflects the broader challenge for smaller allied nations: balancing the need for advanced military capabilities with the risks of dependency on a single commercial provider.
Background
New Zealand relies heavily on its Five Eyes partners for space-based infrastructure. Starshield, launched by SpaceX in 2024, provides encrypted military-grade satellite communications. The NZDF has described itself as 'hollowed out' since the pandemic, with personnel shortages and a need to acquire capabilities quickly. The trial followed a year of internal preparation, with the indemnity signed in December 2025. Meanwhile, the US has poured billions into Starlink and Starshield, and SpaceX became the world's first trillionaire after going public in June 2026.
Key Perspectives
NZ Defence Force: Argues it needs Starshield for secure military-grade internet and data transfer, and cannot procure the deliverables from any other supplier. The trial showed potential utility.
Critics (as reported by RNZ): Warn that relying on privately-owned systems like Starshield is risky, as Ukraine's reduced access last month showed.
US Space Force: Counts on commercial partnerships to prevail against aggressive adversaries, and rates Russia as an acute threat and China as a major pacing threat.
Palantir (Maven maker): Reassured European customers that its software has no 'kill switch' and that buyers have full operational control.
Germany: Ruled out purchasing the Maven Smart System, deeming it inconceivable to let a private foreign contractor access national military databases.
What to Watch
- The NZDF's next steps in the acquisition process and whether a formal tender or direct purchase is pursued.
- Any further changes to Ukraine's Starshield access and the international reaction, especially among Five Eyes partners.
- New Zealand's progress on its stated national mission to launch a sovereign satellite, which could reduce reliance on foreign commercial systems.
Checked
12 claims in this story checked against 1 source: 7 supported.
Show each claim
- SupportedNZDF has moved closer to buying Starshield services after a trial.RNZ New Zealand Headlines: “New Zealand has moved closer to buying services from a satellite network set up by tech trillionaire Elon Musk for secret communications.”
- SupportedThe completed trial showed “potential utility” for the NZDF.RNZ New Zealand Headlines: ““A Starshield trial has been completed and showed potential utility for the NZDF.””
- Partly supportedUkraine’s reduced access to Starshield jeopardised combat and air defence missions.RNZ New Zealand Headlines: “Ukraine's access to it was reduced, jeopardising some combat and air defence missions, with critics warning this was the risk of relying on privately-owned systems in a war or crisis”
- Not in the sourcesStarshield entered service in 2024.RNZ New Zealand Headlines: “Starshield's advent in 2024 gave customers an option with higher encryption and protection from the growing threat of "counterspace" attacks.”
- SupportedThe FMS trial required former Defence Minister Judith Collins to sign an indemnity shielding the US from damages claims.RNZ New Zealand Headlines: “The trial was purchased through the US government's Foreign Military Sales (FMS) system and required the defence minister here to sign an indemnity to shield the US from any damages claims”
- SupportedDefence told Collins the NZDF could not procure the deliverables from any other supplier.RNZ New Zealand Headlines: ““The NZDF cannot procure the deliverables from any other supplier” than the US government, it said.”
- Partly supportedDefence said any loss under the indemnity was unlikely to exceed $10 million.RNZ New Zealand Headlines: “Any loss under the indemnity - which was unlikely - would be unlikely to exceed $10 million, Defence told her.”
- SupportedA capability manager wrote: “Is this something that you can assist us with from there? I apologise for jumping around in subjects, but when you are as hollow an organisation as we are, we have to wear many hats throughout the day.”RNZ New Zealand Headlines: ““Is this something that you can assist us with from there?”. “I apologise for jumping around in subjects,” they went on, “but when you are as hollow an organisation as we are, we have to wear many hats throughout the day.””
- Partly supportedAt mid-2026, the army was 700 personnel short in critical leadership and instructor ranks.RNZ New Zealand Headlines: “The army at mid-2026 was still 700 personnel short “particularly in critical leadership” and instructors' ranks.”
- SupportedThe US Space Force said it was “counting on partnerships with the commercial space industry to help it prevail against aggressive adversaries”.RNZ New Zealand Headlines: “US Space Force said on Thursday it was “counting on partnerships with the commercial space industry to help it prevail against aggressive adversaries”.”
- SupportedReuters reported that the Pentagon is Starshield’s largest customer and has spent billions on Starlink and Starshield services.RNZ New Zealand Headlines: “Reuters has reported the Pentagon is Starshield's largest customer and has spent billions of dollars on both Starlink and Starshield services.”
- Partly supportedThe NZDF industrial strategy aims to deliver capability faster by buying minimum viable products and partnering with large defence contractors.RNZ New Zealand Headlines: “The NZDF industrial strategy is to “deliver capability faster” including by buying or developing minimum viable products, using local small businesses or helping those businesses to partner with huge “primes” (big defence contractors, many of them American).”