SpaceX launching its first test satellites to bring Internet to billions
around the world


*SpaceX will launch its first two test satellites next week, a postponement
from an initial liftoff that was scheduled on Sunday.*

*Elon Musk's space company aims to begin building its own constellation of
4,425 broadband satellites in 2019, with another 7,518 satellites to come
after.*

*The constellation may be able to bring 5G-like service to billions around
the world.*

Michael Sheetz
CNBC

Published 11:17 AM ET Sat, 17 Feb 2018

https://www.cnbc.com/2018/02/17/spacex-testing-its-own-satellite-broadband-internet-network.html


SpaceX is on a collision course with the world's biggest telecom and
satellite manufacturing companies, as it steps up development of its
"Starlink" network of satellites.

The company will soon test its first satellites, Microsat 2a and 2b, which
are headed for orbit aboard SpaceX's Falcon 9 from Vandenberg Air Force
Base, California, according to documents filed by the Federal
Communications Commission (FCC). These satellites will take the next step
into space, which is critical for the network's progress.

On Saturday, SpaceX scrapped plans to launch on Sunday, in the interest of
performing "final checks', and rescheduled for February 21st. However, the
company's big ambitions remain on track.

Starlink – a name SpaceX filed to trademark last year – is an ambition
unmatched by any current satellite network. The largest existing
constellation is built by Iridium, with the company halfway through
launching its new 75 Iridium Next satellites to space, set to finish
deployment in the next year.

The stakes are high, with a space race for a new era viewed as a linchpin
to help make life better here on earth. According to the FCC there are
about 14 million rural Americans, as well as 1.2 million Americans on
tribal lands, who do not have access to even the slowest mobile broadband
services.

If realized, SpaceX's satellite constellation would transform a
traditionally high-cost, low-reliability service. The space industry is
estimated to expand rapidly over the next three decades, with the satellite
internet sector anticipated to grow at an exponential rate.

SpaceX will begin launching an initial constellation of 4,425 Ka/Ku band [a
term that indicates range on the electromagnetic spectrum] low Earth orbit
satellites in 2019, with the system becoming operational once at least 800
satellites are deployed, the FCC documents show. The two test satellites
will orbit about 700 miles above the Earth, in the same range as the
eventual constellation.

Starlink will offer broadband speeds comparable to fiber optic networks,
according to FCC documents, by essentially creating a blanket connection
across the electromagnetic spectrum. The satellites would offer new direct
to consumer wireless connections, rather the present system's
redistribution of signals.

The project is currently under consideration by the FCC. On Thursday,
itreceived backing from FCC chairman Ajit Pai, who said that Starlink would
be "on such innovation … to provide high-speed internet to rural
Americans." The license would give SpaceX six years to deploy all the
satellites, although the FCC is also looking at a petition from SpaceX to
waive the time constraint.

SpaceX CEO Elon Musk has touted Starlink's reach, saying it could bring
5G-like service to billions around the world while also handling up to 10
percent of the internet traffic in more congested regions "where people are
stuck with Time Warner or Comcast."

Starlink would be a "real enabler for people in poorer regions of the
world," Musk has said.

The Microsat 2a and 2b satellites will validate the design and
functionality of the platform over an anticipated 20 months of testing.
Weighing just under 900 pounds each, the SpaceX satellites are also much
smaller than some of the multi-ton behemoths currently in service. SpaceX
will also test six fixed-position ground stations and three mobile ground
stations, located across the U.S.

*Starlink against the world*

SpaceX is valued around $21.5 billion and has received at least $1 billion
in investment from Google-parent Alphabet, as well as Fidelity. The company
says it has over 100 missions on its upcoming launch manifest that are
worth more than $12 billion in contracts.

Despite the multibillion dollar valuation, SpaceX would be going up against
the ground-based systems of telecom giants Time Warner, Comcast and AT&T,
as well as competing with other expansive constellations planned from the
likes of Boeing, OneWeb and Telesat.

Current broadband satellites, such as those from DirecTV and Dish Network,
offer latency speeds around 600 milliseconds at best – many times slower
than the 25 to 30 millisecond speeds SpaceX is expected to offer, according
to FCC documents.

Competitor OneWeb, backed by Japan's SoftBank, has raised over $1 billion
to build a constellation of 720 Ku band satellites, also aiming to deploy
in 2019 and at an altitude of about 750 miles in low Earth orbit. OneWeb's
request was approved by the FCC last year.

Telesat, another satellite operator with FCC, is working to build a
constellation of 120 Ka band satellites by 2021. Telesat's constellation is
primarily targeted for use by U.S. military, but it did launch a satellite
in January to test broadband services.

SpaceX is also planning an additional constellation of 7,518 V band
satellites, situated in a "very low" Earth orbit at just over 200 miles.
The V band spectrum has yet to be used heavily by commercial services but
several companies are looking to expand high-speed direct-to-consumer
services using the system.

Boeing has submitted an application to the FCC for a constellation of 1,396
or more low Earth orbit satellites that would use V band spectrum.
Likewise, OneWeb and Telesat also filed plans with the FCC to use V band,
although with less specific plans thus far.

Making Starlink a global service will likely face international regulatory
hurdles. Previously, Musk has conceded that SpaceX would need permission
from countries to offer the network's services there, which may be a
difficult and slow process.

*Those who have gone before – and failed*

Elsewhere, the road is littered with companies that tried, and failed, to
pull off a coup in space. Back in 2015, Facebook decided against spending
up to $1 billion on a satellite that would provide Internet to under-served
regions in Africa and other continents. Instead, Facebook opted to lease
broadband onboard Spacecom's AMOS-6 satellite, which was destroyed when a
SpaceX Falcon 9 rocket exploded during fueling before launch in 2016.

Microsoft founder Bill Gates helped fund Teledesic, in an effort to build
low Earth satellites to provide Internet service. Yet Teledesic closed in
2002, after racking up more than $9 billion costs.

"But the cost structure of the business is so much better than when Bill
Gates tried it," Paul Gallant, analyst at Guggenheim Partners, told The
Washington Post. "I think Musk's track record of disruptive innovation
would make this a really attractive business for the ... FCC to support."

SpaceX has heavily decreased the cost of access to space with its Falcon
lines of rockets, with launch prices in the tens of millions – compared to
the hundreds of millions or billions offered by competitors. With the
satellite-internet business Musk may well have found a staple business for
SpaceX, one which could make his dreams of colonizing Mars closer to
reality.
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