The developers of new communications satellite constellations -- connecting virtually every part of the Earth -- are engaged in a multibillion-dollar battle to develop dominance in space and the immense revenue that could bring, industry experts say.
Competitors include
But the road to profitability is not navigated simply by launching scores of satellites at a single shot. Other factors come into play.
For example, Musk acknowledged recently that the cost of the user terminal is the biggest challenge for his project. He previously said he hoped to develop a terminal that would sell for under
"Getting the signal to the customer [affordably] has always been the issue with new communications satellite service," said
"You can't just put up satellites and think that will solve everything. You have to have revenue," Khorsand said.
Both Starlink and OneWeb began in 2015. As OneWeb continued to develop, Starlink launched repeatedly. As of
The company has said it anticipates to invest about
Testing soon
Musk said on Twitter recently that limited service could be tested by around August -- when
Enter Bezos, whose plans for space communications services under the Project Kuiper mantle, are shrouded in secrecy.
In the battle for funding, Bezos' deep pockets only grew deeper as the coronavirus pandemic sent more people online to shop. Analysts following the high-tech satellite slugfest say they have no idea how much Bezos -- who consistently ranks among the wealthiest people in the world -- is investing in Project Kuiper.
Like Starlink, OneWeb said it aimed to provide reliable internet service to remote regions. But OneWeb had only three launches and ran into funding trouble just as the pandemic took hold.
The company was testing and developing technology with 74 satellites in orbit and permits for up to 720.
In bankruptcy court, OneWeb reported assets of
Pandemic hurt
Despite the positive balance sheet, the company said financial market fallout from the pandemic interrupted efforts to raise more money for expansion of the satellite network. As a startup, the company had no significant revenue.
OneWeb, based in
The satellite startup filed a new application with the FCC in late May to boost the number of planned satellites to 48,000.
OneWeb's move to seek more satellite permits is aimed at making it more attractive to a new owner, or for a sale of the existing satellites, analyst Khorsand said.
"It's really more about whether anyone can use the satellites that are up there already. I just don't know if they are compatible with any other company's technology, because most of the technology is pretty proprietary," he said.
Despite backing from major players like Airbus and
One veteran player had planned to join the fray, as well.
Intelsat reborn
Intelsat, founded in 1964, has been reborn with new investments several times. It planned a communications satellite constellation, but filed for bankruptcy protection in May as financial fallout from the pandemic hit many industries. The company cited only "substantial legacy debt" in its bankruptcy announcement.
Observers of the satellite communications industry are well-acquainted with struggling startups and bankruptcy -- due to the high cost of getting underway and the time needed to become fully operational.
Costs increase more because federal and international regulations require thruster systems on the communications satellites to avoid potential collisions.
Khorsand noted that another firm in the competition,
With lucrative military contracts providing an enticement,
Iridium is the only commercial provider that presently uses such laser optics, said
New generation
Before such space laser connections can happen, Starlink will need a new generation of Starlink satellites, Quilty said. The current Starlink satellites in orbit aren't designed for that technology, he said.
"Starlink will have ground stations, but over the ocean, there are no ground stations, so it has to have a crosslink based in space to beam super-fast service around the world," Quilty said.
For Musk and Bezos, dominating the future of space communication also could benefit their long-term goals to explore the moon and Mars, Quilty said.
"You can't fund Mars exploration only on the launch business, especially if
"If Musk is successful at establishing a colony on Mars, a good communications link to Earth will be vital, and Starlink would help that."
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