Competitors Claimedly Bully Satellite Frequency from SpaceX to Secure Spot on a Spacecraft
Rewritten Article:
SpaceX, the groundbreaking company behind reusable rockets, has garnered significant attention for lowering the cost of space travel and delivering services to clients like NASA. They've even ventured into satellite internet with Starlink, a service that competes with the likes of Amazon's yet-to-be-launched network. However, the satellite industry is limited, with few options for competitors besides SpaceX and New Zealand's Rocket Lab. In fact, Amazon is reportedly relying on SpaceX to launch their Kuiper satellites.
This arrangement raises a potential conflict of interest: SpaceX holds a valuable asset that its competitors desperately need. So, to secure this asset, what measures might SpaceX take?
According to The Wall Street Journal, SpaceX's customers might have to make concessions on spectrum, a valuable yet finite resource used for delivering internet to the ground. Governments divide and sell this resource at astronomical prices; they also manage disputes between users to minimize interference.
As per the Journal, in 2022, SpaceX requested concessions on competitor OneWeb's spectrum use during negotiations for launching its satellites. This could imply a variety of things, but satellite companies often operate within the same frequency range. SpaceX might have wanted OneWeb to adjust its operations to minimize interference. OneWeb acknowledged that a deal was reached regarding spectrum, but they asserted that it had no connection to their launch negotiations.
Another company, Canadian firm Kepler Communications, has depended on SpaceX to launch 16 out of 23 satellites for their network, primarily intended for space-only communication. Reportedly, they had a dispute with SpaceX over sharing spectrum allocated to them by the Canadian government and needed the government's intervention to resolve it.
This month, the government added Starlink satellites to a list of foreign satellites allowed to operate in Canada, paving the way for SpaceX to offer services in the country. However, coordination regarding the use of airwaves is still needed.
It remains uncertain what would happen if Kepler or OneWeb refused to comply with SpaceX's demands. Although SpaceX leaders have expressed internally that they can cater to both Starlink and outside clients, satellite companies are hoping for more competition in the rocket industry.
Spinning off Starlink and making it independent could address anti-competitive concerns. However, Elon Musk's habit of intertwining his businesses could impede this. For instance, he once sent engineers from Tesla over to Twitter for free work. Additionally, when Nvidia allocated over $500 million of AI chipsets to Tesla, Musk intervened, asking the chipmaker to prioritize X and xAI instead. As long as Musk has shares in Starlink, it's hard to imagine the company not receiving priority at SpaceX.
- SpaceX, known for its stakes in satellite internet with Starlink, might request concessions on the spectrum used by competitors, like OneWeb, as suggested by The Wall Street Journal.
- The satellite industry, with SpaceX and New Zealand's Rocket Lab as its main players, could benefit from increased competition to foster a healthy market.
- In the event of a dispute with SpaceX over spectrum allocation, companies like Kepler Communications might require government intervention to find a resolution, as reportedly occurred in their case.
- As SpaceX continues to expand its operations through Starlink, concerns over anti-competitive practices may emerge, given Elon Musk's tendency to interlink his businesses, such as sending engineers from Tesla to Twitter and negotiating chip allocations for Tesla with Nvidia.
