[Reading Science] US Starlink vs China’s Belt and Road... Space Internet Competition Heats Up

Despite SpaceX's Lead, China's Challenge Is Not Easy
China's Satnet Applies to Launch 12,000 Satellites
US Space Internet Industry Appeals "Difficult to Defend"
CSIC Says "Belt and Road Is Threatening, Regulation Easing and Procedure Improvement Needed"

[Asia Economy Reporter Kim Bong-su] Recently, spurred by the Russia-Ukraine war, 'space internet' utilizing satellites has emerged as a next-generation ultra-high-speed communication network that can be accessed anytime and anywhere in the near future. The competition is already fierce, with the United States and China launching large-scale satellites to capture the market. Amid this, the U.S. space internet industry is drawing attention by urging government support and deregulation to counter the threat posed by China’s Belt and Road Initiative.

The U.S. think tank, the Center for Strategic and International Studies (CSIS), pointed out this reality on the 14th (local time) and released a report emphasizing the need for active support for existing U.S. companies to counter China. Since 2020, the U.S. has taken the lead by building and launching space internet networks, led by SpaceX. As of November, SpaceX alone has launched over 3,500 Starlink satellites, providing commercial services in more than 50 countries including North America, South America, Europe, Japan, Australia, and New Zealand. SpaceX plans to launch an additional 30,000 satellites and has already received Federal Communications Commission (FCC) approval for 7,500 satellites. Amazon also plans to launch 1,618 satellites by 2026 through its Kuiper program, with a total of about 3,200 satellites planned to provide space internet services.

[Image source=Yonhap News]

The challenge lies with China. China is currently pushing forward with the launch of a space internet service by independently building a low Earth orbit (LEO) small satellite network and has applied through the International Telecommunication Union (ITU) to launch 12,992 small satellites. The Chinese state-owned company 'SatNet' plans to develop reusable launch vehicles and establish a space hub for mass satellite production. The report noted, "China plans to provide services in regions such as Asia, South America, and Africa, where wide-area internet networks are lacking and where U.S. space internet companies are attempting to enter," adding, "China will leverage its Belt and Road Initiative as a tool to increase its market share in the space internet sector."

The report emphasized that to respond to China’s strategy, the U.S. government must increase support for space internet companies. It stated, "The U.S. government should collaborate with private companies capable of operating wide-area space internet networks to enhance soft power globally," and warned, "China wields enormous economic influence over Belt and Road partner countries, negotiating to exclude U.S. space internet services while easing LEO system regulations in those countries."

On the other hand, although U.S. companies entered the market first, they are struggling due to rising costs and strict regulations. The report explained, "Launching satellites and building services for space internet requires an enormous initial investment of approximately $5 billion to $10 billion," and added, "To maintain competitiveness, U.S. companies need further deregulation." It also pointed out, "Space-related regulatory authorities are struggling to keep pace with the growth of the private sector, including space internet," and stressed the need to update regulations and improve review procedures.

In this context, SpaceX recently applied for about $900 million in subsidies from the FCC to build a wide-area internet service network for low-income and underserved areas but was rejected. Following SpaceX, Amazon’s Kuiper, the UK’s OneWeb, Canada’s Telesat, and China’s SatNet plan to launch more than 90,000 small satellites and enter the space internet service market soon.