Musk's 'Starlink' Competitors Face Major Challenges [Tech Talk]

Will a Competitor to 'Starlink' Emerge?
Falling Behind in Satellite Generations and Scale
Terminal Production Gap Also a Major Obstacle

Elon Musk, CEO of Tesla and a close associate of U.S. President Donald Trump, is also the founder of SpaceX, which provides the space internet service 'Starlink.' Starlink offers ultra-high-speed networks to disaster areas and battlefields where internet connectivity is difficult, presenting new possibilities for the internet business.

However, recently, as conflicts between the U.S. and Europe have emerged over the Russia-Ukraine ceasefire negotiations, Starlink has instead become highlighted as a security concern within Europe. Although Musk personally reassured via X on the 10th (local time) that "Starlink in Ukraine will not be cut off," Poland, which had been paying for Ukraine's Starlink service, announced it would seek alternative providers.

Starlink satellite waiting for orbital deployment. SpaceX website

There are several companies providing satellite-based internet like Starlink, but most are limited to maritime communications such as for ships. Some companies offer global services surrounding the entire Earth like Starlink. However, even these companies do not meet the ease of use, performance, and price competitiveness of Starlink. To produce a substitute for Starlink, two major hurdles must be overcome.

The First Hurdle: The Growing Gap in Satellite Networks

Satellite internet provides communication by launching satellites into low Earth orbit (160?2000 km above the Earth) that emit electronic beams to communicate with ground antennas. Besides Starlink, some companies have already commercialized or are preparing to commercialize global satellite internet. Notable examples include the UK company OneWeb (a subsidiary of French company Eutelsat) and Amazon's 'Kuiper Project.' Both companies are building low Earth orbit satellite networks like Starlink, but they cannot keep up with Starlink's development speed in terms of the most critical satellite performance and scale.

Currently, Starlink has entered the development of its second-generation satellite network. This network consists of 'Starlink V2 mini' satellites, designed and manufactured by SpaceX itself. Although called 'mini,' these satellites weigh nearly three times more (740 kg) than the first-generation satellites (260 kg). Larger satellites can carry wider solar panels, ion thrusters, powerful antennas, and processing devices. A full V2 satellite weighing about 1.2 tons is also in preparation, which is much larger than the V2 mini.

*As of February 2025.

Starlink's competitor OneWeb currently operates about 600 first-generation satellites weighing 150 kg each. This is absolutely insufficient in scale compared to Starlink, which has over 6,700 satellites operating in orbit. However, OneWeb operates at a much higher altitude of 1,200 km above Earth. This means the radio waves spread wider, increasing the coverage area per satellite, allowing global service with a relatively smaller satellite network.

However, the increased distance from the ground results in higher latency (the time it takes for data to be transmitted over the network, with longer times causing communication distortion), which is a disadvantage. More importantly, OneWeb has yet to replace its first-generation satellites designed in 2019, putting it behind Starlink. Nevertheless, OneWeb announced plans to manufacture and launch second-generation satellites within this year.

The Kuiper Project is still in its infancy. Kuiper ultimately plans to deploy over 3,620 satellites in low Earth orbit to provide ultra-low latency internet like Starlink, but after launching two prototypes in 2023, its schedule has been continuously delayed. The first-generation Kuiper satellite launch has now been postponed to early 2025.

The Second Hurdle: The Terminal Supply Landscape

Having a satellite network does not mean internet service can be provided. Ground terminals that receive the satellite communication beams are necessary. Starlink's true strength lies in the terminals, which SpaceX designs, manufactures, and sells directly.

The Starlink portable terminal (terminal) 'Starlink Mini' is priced initially at $599 (approximately 870,000 KRW). Starlink offers a self-designed, manufactured ultra-compact terminal, making installation simple and the price affordable. SpaceX

Starlink shines in battlefields and disaster environments like Ukraine thanks to its lightweight and compact terminals. Most satellite communication terminals are heavy and large. However, SpaceX developed a flat terminal about the size of a laptop and sells it to customers. Having reached 5 million global subscribers (as of February 2025), it has succeeded in lowering prices through mass production.

Starlink can rapidly expand its business by 'donating' terminals to disaster areas. This is the method Musk mainly uses when providing free Starlink service to disaster zones. According to the Ukrainian local media 'Kyiv Independent,' as of last year, 42,000 Starlink terminals had been delivered and deployed across Ukraine. These terminals can receive internet signals in home yards and are also used by soldiers to receive critical tactical information. Starlink terminals play a key role in remotely controlling unmanned ships and drones.

OneWeb orders and supplies devices from antenna specialist manufacturers. Screenshot from BT website

On the other hand, satellite internet providers other than SpaceX currently order terminals from other companies. OneWeb partners with antenna manufacturers such as Hughes Communications to supply terminals. Among domestic companies, Intellian Technologies has been selected as an antenna supplier for OneWeb. Since these competitors must form supply chains with multiple companies and operate together, they find it difficult to arbitrarily increase terminal production. This issue is a major obstacle when seeking Starlink alternatives in Europe.

French company Eutelsat, OneWeb's parent company, also acknowledged the difficulty of terminal production in an interview with overseas tech media 'Wired' on the 6th. A Eutelsat spokesperson claimed that OneWeb's satellite coverage is already at a level similar to Starlink's but stated, "(Supplying over 40,000 terminals) cannot be done overnight like instant coffee."