[21st Century Space War] ① Musk VS Bezos 'Space Hegemony' Competition

Core Infrastructure of the 6G Era 'Satellite Communication'
Global Companies like SpaceX and Amazon Lead Market with Financial Power

The global space industry ecosystem is undergoing rapid changes. The so-called 'New Space' era, in which space development shifts from being state-centered to driven by private companies, has arrived. The field expected to see the most advancement in the New Space era is 'communications.' In particular, satellite communications are gaining attention as a core infrastructure for global broadband and 6G implementation, establishing themselves as next-generation communication technology. Competition to secure market dominance, backed by massive capital from global companies such as SpaceX and Amazon, is also intensifying. Asia Economy aims to examine the current status of South Korea's space technology in response to the rapidly changing international space landscape and to explore the future development and direction of the space development industry.

Why Satellite Communications?

Satellite communications refer to communication that supports data transmission and reception between space satellite communication networks and ground base stations and satellite antennas by utilizing small communication satellites orbiting the Earth. It enables wireless communication over long distances ranging from approximately 1,000 km to a maximum of 36,000 km between ground antennas and satellites without intermediate relay points or physical cables.

Even in emergencies such as disasters, the possibility of communication disruption due to damage or rupture is low, and it can be used regardless of the condition of terrestrial lines. Additionally, since long-distance cable installation is unnecessary, satellite broadband internet services can be provided to digitally underdeveloped areas such as mountainous and remote islands, significantly contributing to bridging the information gap between regions.

[Image source=Yonhap News]

In particular, satellite communications are gaining attention as a next-generation core infrastructure for the dawn of the 6G era. Kyung-il Choi, Executive Vice President of Technology at KT SAT, said, "While the communication system pursued by 5G was to connect everyone in the world anytime and anywhere, in the 6G era, not only people but all things must be connected," adding, "To build the 6G communication network necessary for the expansion of the Internet of Things (IoT) and Urban Air Mobility (UAM), the development of low Earth orbit satellite communication networks is essential."

Minsu Shin, Principal Researcher at the Electronics and Telecommunications Research Institute (ETRI), also said, "Launch costs are decreasing due to reusable rockets and miniaturization of satellite components," and "The atmosphere that the 6G era is approaching has been formed." This means the time has come for low Earth orbit satellite communications to play their role.

Investment bank Morgan Stanley also predicted that the global space industry will grow from $385 billion (approximately 480 trillion KRW) in 2020 to $590 billion (approximately 735 trillion KRW) in 2030, and $1.1 trillion (approximately 1,370 trillion KRW) in 2040. In particular, the satellite communication market is expected to grow rapidly as global private companies enter the low Earth orbit satellite communication market based on ultra-small satellites that can be developed in a short time and at low cost.

'Separately yet Together'... Accelerating Space Hegemony Competition

There is no doubt that the United States currently leads the space and satellite communication industries. In particular, Elon Musk's SpaceX and Jeff Bezos-led Amazon are dominating the global space industry through a competitive cooperative relationship.

On the 16th of last month, Amazon announced to the public that its satellite internet test satellites launched were operating normally. Satellite internet is an industry that connects internet networks by launching thousands of satellites close to Earth's orbit. Amazon named this the 'Kuiper Project' and launched two test satellites from Florida, USA, last October.

[Image source=Yonhap News]

Amazon explained, "Within 30 days of sending two test satellites into space, we achieved a 100% mission success rate," adding, "All systems onboard the two test satellites performed as expected, and we were able to demonstrate ultra-high-definition (4K) video streaming and two-way video calls through the network."

Amazon plans to invest a total of $10 billion (approximately 13 trillion KRW) with the goal of launching 3,236 satellites into low Earth orbit within ten years. Mass production of Kuiper satellites began this month, and the first communication satellite will be launched in the first half of next year.

Amazon's aggressive investment is seen as the start of full-fledged competition with SpaceX's Starlink, the current leader in the satellite communication business. Musk has already quickly secured a lead in the satellite internet market through SpaceX, which he founded. Since 2019, SpaceX has launched about 5,000 satellites and plans to deploy a total of 12,000 satellites.

Domestic service will begin soon. SpaceX has partnered with KT SAT and plans to start Starlink's satellite internet service business as soon as government approval is obtained. KT SAT plans to initially focus on mobility sectors such as ships to provide Starlink. This is to create synergy between geostationary and low Earth orbit satellites. The plan is to provide stable geostationary communication needed for long voyages along with low-latency, high-speed communication from low Earth orbit satellites.

[Image source=Yonhap News]

Musk and Bezos are also well known as rivals in the space business. They once exchanged various ideas about space tourism and Mars exploration, but their relationship soured after NASA selected SpaceX as the sole manufacturer of the lunar lander. Since then, they have become bitter enemies, often mocking or criticizing each other's achievements on social media whenever possible.

However, they do not pursue unconditional competition. Recently, Amazon signed a contract with SpaceX for the Kuiper Project. They agreed to launch satellites three times in 2025 using SpaceX's Falcon 9 rockets. However, the cost of using SpaceX rockets was not disclosed. Amazon has experienced ups and downs in launching satellites. In October, two satellites were launched using the Atlas V rocket from ULA, a joint venture between Boeing and Lockheed Martin, but the rocket exploded mid-flight.

Although they are rivals, it is interpreted that they made a practical decision out of concern that delays in the Kuiper Project could result in completely losing space hegemony. Amazon stated, "The Kuiper Project satellites were designed from the start to be compatible with multiple rocket providers and vehicles," adding, "Using SpaceX rockets reduces the risk of missing schedules and allows us to quickly carry out the mission to connect communities worldwide."