Competition in LEO is the American Way

Competition:  it’s the American way, and the best incentive for innovation.  High above the Earth’s surface, a new domain of commercial and military competition is opening.  This is Low Earth Orbit, and it is a huge market for broadband internet services.  One industry analyst described five core markets, including “direct to device, direct to consumer, high bandwidth (for business-scale users), backhaul (providing connectivity to underserved areas), and sovereign government.”

Putting small satellites in orbit is the name of the game.  Elon Musk’s Starlink is the clear front-runner with over 9,000 satellites on orbit delivering 100 Mbps to customers at speeds faster than some terrestrial operations. 

Then of course there is China.  The People’s Republic of China wants to put 200,000 satellites in LEO, all under the control of the Chinese Communist Party, of course. Mark it as yet another sector where China is gunning for commercial dominance, to no good end.  China is far behind Starlink today but the historical record suggests they will fight to get ahead. 

Fortunately, the opportunities in LEO have sparked true, American competition.  Formerly known as Kuiper, Amazon Leo currently has over 200 satellites on orbit and is aiming for an initial constellation of 3,236 satellites.  The Federal Communications Commission (FCC) recently approved the Gen2 Amazon Leo constellation of 4054 satellites, including polar coverage.  Also in the mix is TeraWave, seeking to offer access from a constellation of 5,280 LEO satellites, with an add-on of even faster speeds via optical links from 128 MEO satellites.

However, space launch, while vastly improved, is still risky and subject to fits and starts.  Amazon Leo is behind in delivering the first part of its constellation and thus must seek a waiver from the Federal Communications Commission in order to keep its license. 

The FCC’s original intent was to keep the way clear for competition and innovation.  Requiring a timetable for milestone progress served in part to prevent a company from obtaining a license just to squeeze out other new entrants.  But the fact is that stimulating American competition is the best insurance policy against a Chinese capture of space.  Approval by the FCC of the waiver for Amazon Leo will keep the competition healthy. 

Read the Comments to the FCC here.