Elon Musk Aims to Dominate Space... "Pressures Competitors to Share Frequencies"

SpaceX Demands Frequency in Exchange for Rocket Launch

SpaceX, the space company led by Tesla CEO Elon Musk, is reportedly using its dominant market position to pressure competitors into sharing their wireless frequency bands, according to the Wall Street Journal (WSJ) on the 9th (local time).

According to sources, SpaceX has demanded that competitors such as Canada's satellite internet service provider Kepler Communications and the UK's OneWeb share their wireless frequency usage rights. These companies operate businesses that provide internet worldwide by launching low Earth orbit satellites into space, similar to SpaceX's Starlink.

[Image source=AP Yonhap News]

Wireless frequency bands are invaluable resources that satellite communication companies cannot easily concede, but experts point out that companies without their own rocket launch capabilities find it difficult to refuse SpaceX's demands.

In Kepler's case, 16 out of the 23 satellites it has launched relied on SpaceX rockets, showing a high level of dependence. OneWeb, which had planned to use Russian rockets, was forced to use SpaceX due to the war disrupting those plans. With the upper hand at the negotiation table, SpaceX is demanding that these competitors share their wireless frequency bands with Starlink on the condition that they use SpaceX rockets to launch their satellites.

SpaceX has already launched more than 6,000 satellites using its Falcon rockets, providing the most extensive satellite internet service currently available. If it also gains control over competitors' frequency bands, its dominant market position will become even more solidified. Last month, SpaceX stated that "Starlink connects over 4 million people with high-speed internet across more than 100 countries, regions, and multiple markets."

The variable factor is antitrust investigations by regulatory authorities. The WSJ reported that "a law firm recently contacted the U.S. Department of Justice's antitrust division on behalf of some satellite and rocket companies to discuss whether SpaceX is abusing its market dominance."

William Kovacic, a professor at George Washington University Law School and former chairman of the U.S. Federal Trade Commission (FTC), pointed out, "The fate of the satellite communication market depends on how much more power SpaceX acquires," adding, "If not carefully managed, it could seriously distort the competitive market structure."