Changing Landscape of the Global Space Industry
The global space industry trend is rapidly changing. The new space era, where traditional state-centered space development is shifting to private companies, has arrived. The most promising field in the new space era is satellite communication. It’s gaining attention as a critical infrastructure for global broadband and 6G implementation, establishing itself as the next-generation communication technology. With the substantial capital of multinational companies like SpaceX and Amazon, the race to dominate the market is intensifying.
Importance of Satellite Communication
Satellite communication supports data transmission between a space satellite communication network, terrestrial base stations, and satellite antennas, utilizing small communication satellites orbiting the Earth. Communication is possible wirelessly, without any intermediate points or physical cables, over long distances of approximately 1,000km (621 miles) to a maximum of 36,000km (22,369 miles) between the ground antenna and the satellite.
It’s reliable in emergencies as the possibility of communication disruption due to damage or rupture is low, and it can be used regardless of the situation on the ground. Furthermore, since it doesn’t require long-distance cable installation, it can provide satellite broadband internet services even in digitally disadvantaged areas like mountains and remote islands, significantly closing the information gap between regions.
Satellite Communication in the 6G Era
Satellite communication is particularly noteworthy as a pivotal next-generation infrastructure for the inauguration of the 6G era. Choi Kyung-il, Executive Vice President of KT SAT, said, “If 5G aims to connect all people anywhere, anytime, in the 6G era, not only people but all things must be connected.” He emphasized that “the development of low Earth orbit satellite communication networks is essential for building 6G networks needed for the expansion of the Internet of Things (IoT) and urban air traffic (UAM).”
Shin Min Soo, a senior researcher at the Electronics and Telecommunications Research Institute (ETRI), noted the impact of advancements in space technology, such as reusable rockets and the miniaturization of satellite components, on reducing launch costs. He emphasized that these developments create an atmosphere indicative of the approaching 6G era when low Earth orbit satellite communication is expected to play a significant role.
Morgan Stanley predicted that the global space industry would grow from $385 billion in 2020 to $590 billion in 2030 and $1.1 trillion in 2040. In particular, it forecasted that the satellite communication market would grow significantly as global private companies enter the low Earth orbit satellite communication market based on small satellites that can be developed quickly and cheaply.
Growth and Projections in the Global Space Industry
Undoubtedly, the United States is leading the space and satellite communication industry. SpaceX, led by Elon Musk, and Amazon, led by Jeff Bezos, are mainly seizing the global space industry through a competitive cooperative relationship.
Last month, Amazon announced to the public that the satellite internet test satellite it launched was operating normally. Satellite internet is an industry that connects an internet network by establishing thousands of satellites near Earth’s orbit. Amazon named this the Kuiper Project and launched two test satellites from Florida in the U.S. last October.
Amazon reported that within 30 days of launching two test satellites into space, they achieved a 100% mission success rate. The company confirmed that all systems on the two satellites functioned as intended. Furthermore, they successfully demonstrated capabilities such as ultra-high-definition (4K) video streaming and bidirectional video calls through the satellite network.
Amazon plans to invest $10 billion to launch 3,236 satellites into low Earth orbit within ten years. This month, it will start manufacturing Kuiper for mass production and launch the first communication satellite in the first half of next year.
SpaceX and Starlink’s Market Presence
With Amazon’s aggressive investment, evaluations have started that a full-fledged competition with Starlink, the current strongest in the satellite communication business, has begun. Musk has already preemptively seized the satellite internet market with SpaceX, which he established. SpaceX has launched about 5,000 satellites since 2019 and plans to launch 12,000.
Korean domestic services will also start soon. SpaceX has agreed to start the Starlink satellite internet service business as soon as it receives government approval in partnership with KT SAT. KT SAT plans to focus on mobility, such as ships, and provide Starlink. This is for creating synergy between geostationary and low Earth orbit satellites. The plan will give stable communication from geostationary orbits, necessary for long voyages, and low-latency, high-speed communication from low Earth orbit.
The Rivalry Between Elon Musk and Jeff Bezos
Musk and Bezos are well-known as rivals in the space business. They once exchanged ideas about space tourism, Mars exploration, and other space businesses, but their relationship turned sour when NASA selected SpaceX as the sole manufacturer of lunar landers. Since then, they have completely turned into enemies, mocking or criticizing each other’s achievements on social media whenever possible.
However, they do not pursue competition unconditionally. Amazon recently signed a contract with SpaceX for the Kuiper Project. They agreed to launch satellites three times using SpaceX’s rocket Falcon 9 by 2025. However, they did not disclose the cost of using SpaceX’s rocket. Amazon has been struggling to launch satellites. In October, it launched two satellites using the Atlas V rocket of ULA, a joint venture between Boeing and Lockheed Martin, which exploded midway.
Despite being competitors, Amazon made a practical decision due to fears that any delay in the Kuiper project could result in a total loss of space dominance. Amazon stated, “We initially designed the satellites for the Kuiper Project to be compatible with various rocket providers and vehicles.” They added that utilizing SpaceX’s rockets can mitigate the risk of schedule delays and expedite their mission to connect communities globally.
By. Nahum Kang
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