In an article published by The Wall Street Journal on October 9, 2024, SpaceX’s influence within the space industry was highlighted as the company negotiates with other satellite operators to share valuable spectrum rights. As mentioned in the article by Emily Glazer, Dana Mattioli, and Micah Maidenberg, SpaceX has been pushing for these arrangements while leveraging its dominance in the rocket-launching market.
According to the report, companies such as Kepler Communications and OneWeb were approached to discuss sharing their spectrum rights with SpaceX’s Starlink broadband business before launching their satellites into orbit.
Spectrum rights play a critical role in ensuring Starlink’s growing network of over four million users worldwide can access clear and reliable communication. Elon Musk’s space company position as the leading rocket-launch service provider gives it leverage during negotiations with rival satellite operators, enabling it to propose these terms during launch discussions.
However, as reported in the article, this raised concerns from other industry players. Law firm Wilson Sonsini, representing some satellite and rocket companies, reportedly met with the U.S. Justice Department’s antitrust division to explore whether SpaceX’s actions could be viewed as an abuse of market power.
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The exchanges
A spokesperson for SpaceX denied that the company forces inequitable terms, noting that spectrum-coordination agreements must be ratified by governments to ensure fairness. In a statement cited in the Wall Street Journal, the spokesperson said, “We consistently work to promote both a competitive broadband landscape alongside a robust launch economy.”
The company holds a strong position in both rocket launches and satellite operations. As noted in the article, SpaceX’s two-fold business model is unique in the industry, where other companies typically focus on either launching rockets or operating satellites. This will eventually change, with Rocket Lab and other players planning their own constellations. Musk’s company, however, regularly deploys satellites for competitors while simultaneously working to grow its Starlink network.
Despite the opportunities SpaceX provides to its competitors through rocket launches, some executives, such as Matt Desch, CEO of Iridium Communications, believe more alternatives are needed in the launch market. Desch is quoted in the article saying that competition still soesn’t exist but “we need it.”
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The OneWeb saga
One significant instance discussed in the article involves SpaceX’s negotiations with OneWeb, another satellite operator. According to sources familiar with the talks, SpaceX requested spectrum concessions from OneWeb as part of a satellite launch deal in 2022.
Space Voyaging firstly confirmed the first launch of OneWeb with SpaceX back in December of 2022, during the NewSpaceEconomy ExpoForum.
While the specific terms of the agreement remained confidential, a former OneWeb employee suggested in the WSJ article that the company agreed to share spectrum rights to secure launch slots. However, a spokesperson for OneWeb (now part of Eutelsat) denied this claim, stating that spectrum agreements had no connection to the launch deal and were “beneficial” to both parties.
The complexities surrounding spectrum sharing have also led to regulatory interventions. As mentioned in the Wall Street Journal article, U.S. and Canadian regulators acted as mediators in a spectrum-sharing dispute between SpaceX and Kepler Communications. SpaceX has been a major launch provider for Kepler, having deployed 16 of its 23 satellites. The US company recently gained Canada’s approval for its Gen 2 satellites.
The intricate dynamics of the satellite industry are only at the starting line. What can we expect in the coming years?
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