2024 has seen mergers, partnerships, and new entities that promise to reshape the satellite services sector, which extends beyond internet access and includes nascent Network-to-Network (NTN) services. Driving competition in LEO, medium Earth orbit (MEO), and geosynchronous Earth orbit (GEO) market segments could provide a much-needed B plan when events like Hurricane Helene disrupt daily life.

A Satellite Communications Recap

Earlier this year, the FCC launched the Space Bureau, which was designed to cut huge backlogs of applications for satellite approvals. At that time, roughly 4,000 LEOs were in orbit, with another estimated 20,000-30,000 awaiting review by the FCC.

The new bureau includes an agency dedicated to working with foreign regulators to coordinate international operators. FCC Chair Rosenwarcel wants to create competition to Musk’s SpaceX.

Starlink controls roughly two-thirds of all satellites and has put roughly 7,000 satellites in space since 2018. Compare that to just test launches expected in 2025 from Amazon’s Project Kuiper venture announced in 2019.

Rosenworcel said at a conference that Starlink has “almost two-thirds of the satellites that are in space right now and has a very high portion of internet traffic,” according to a Reuters report. “Our economy doesn’t benefit from monopolies. So, we’ve got to invite many more space actors and many more companies that can develop constellations and innovations in space.”

Benefits of Satellite Communications Competition 101

Competition in most markets has been attributed over the decades to more viable players in a given market sector or vertical industry. The FCC chair repeated them. “Every communications market that has competition is strong, we see lower prices and more innovation, and honestly, space should be no exception.”

One analyst predicts Amazon is going to be the next big player in the LEO broadband market, joining OneWeb, Viasat, and Telesat. “I’m not sure the industry needs any more competition beyond those players,” said Jeff Heynen, Vice President, Broadband Access and Home Networking at Dell’Oro Group, a market research and analysis firm. “Obviously, it is a very capital-intensive business model with very high barriers to entry. So realistically, there probably will not be any additional entries.”

Mergers or partnerships between very large players, such as the SES buying Intelsat and Intelsat teaming with Softbank – and the emergence of Amazon – would lend credence to Heynen’s vision. OneWeb has teamed with Eutelsat in a merger of two satellite operators that closed in late September,

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