SpaceX uses dominance in rocket launches to boost Starlink, WSJ reports

October 15, 2024

SpaceX has used its dominant position as the primary rocket launcher to push satellite rivals to share wireless airwaves with its Starlink broadband internet business, the Wall Street Journal reported on Wednesday.

The Hawthorne, California-based company asked other firms, such as Kepler Communications and OneWeb, to share their wireless spectrum rights with SpaceX before they agree to launch their equipment, the report said, citing people familiar with the matter.

Attorneys from a law firm met with the Justice Department’s antitrust division in recent months to bring attention to these arrangements on behalf of some satellite and rocket companies to discuss whether SpaceX is abusing its power, the report said.

“Following the loss of OneWeb’s launches due to the Russian invasion of Ukraine, OneWeb signed new launch agreements with both SpaceX and NSIL,” a spokesperson for British government-backed company said.

SpaceX did not immediately respond to a Reuters request for comment, while Kepler declined to comment.

Over the past few years, Elon Musk, CEO of SpaceX, has sought to expand Starlink’s coverage to reach more users worldwide.

Earlier this year, T-Mobile announced that SpaceX, which launches rockets on behalf of commercial and government clients, had launched a Falcon 9 rocket carrying Starlink satellites capable of beaming phone signals from space to smartphones.

U.S. and Canadian regulators mediated a dispute between Kepler and SpaceX over spectrum sharing, an agreement of which could help Starlink gain broader access to the Canadian market, the WSJ report said.

On Sunday, the U.S. Federal Communications Commission authorized SpaceX and T-Mobile to enable direct-to-cell capability on Starlink satellites, providing cellular service in areas affected by Hurricane Helene.

Source: Reuters reported by Zaheer Kachwala in Bengaluru and edited by Tasim Zahid