On Monday morning, SpaceX successfully completed its 100th launch of the year. However, aboard the Falcon 9 rocket were not the new Starlink satellites the world has come to expect but a collection of 24 competitors’ satellites. This raises a compelling question: How did we arrive at a point where Elon Musk and Jeff Bezos , rivals on multiple fronts, find themselves collaborating in the final frontier of space?
A Little Context. Starlink has enjoyed unhindered growth for six years, with SpaceX deploying over 8,000 satellites . This rapid expansion has enabled the company to establish a dominant presence in the satellite broadband Internet market.
Now, however, a new contender with comparable financial backing has entered the game: Amazon’s Kuiper project . Founded by Jeff Bezos , Amazon has begun to unveil its own megaconstellation aimed at providing high-speed connections across the globe, directly competing with the services offered by Elon Musk.
Time Against. The major hurdle for Kuiper is a ticking clock. The license from the Federal Communications Commission (FCC) in the United States mandates that half of its constellation—1,618 satellites out of a total of 3,232—must be operational by July 2026. In contrast to SpaceX’s vertical integration, Amazon does not manufacture its own rockets.
To meet its looming deadlines, Amazon made headlines in 2022 by executing what is described as the “largest commercial acquisition in history.” The company inked contracts with United Launch Alliance (ULA) for its Atlas V and Vulcan rockets, with Arianespace for the Ariane 6 , and even with Blue Origin —Bezos’ own aerospace company—for its massive New Glenn rocket. However, many of these rockets are newly developed and have faced significant delays.
Just Business. Although Bezos attempted to restrict Amazon from utilizing SpaceX’s services, the logical choice for shareholders was to hire several Falcon 9 rockets. These rockets offer a unique reuse capability, which typically results in the lowest cost per kilogram when it comes to launching payloads into orbit.
SpaceX has already demonstrated its willingness to launch satellites for competitors. Between 2022 and 2024, the company executed four satellite launches for Eutelsat OneWeb , its European rival, after the Russian invasion of Ukraine sidelined the Soyuz and Proton rockets. For SpaceX, this arrangement is financially beneficial as it collects revenue from competitors, which can then be reinvested into its satellite network.
Strategic Advantages. Yet, beyond mere financial considerations, a more profound strategy is at play. The increasingly crowded radio spectrum has become a critical issue. According to research from the Wall Street Journal , SpaceX has leveraged its dominant position in the launch market to pressure rivals for essential spectrum rights.
The radio spectrum encompasses electromagnetic waves crucial for wireless communications. This finite, invisible resource is essential for satellite constellations to transmit and receive data without interference. Governments, via organizations like the FCC in the U.S., allocate rights for spectrum usage.
SpaceX’s Spectrum Needs. The need for additional spectrum has grown urgent as SpaceX strives to serve more than four million Starlink users. Reports suggest that Musk’s company has approached firms like OneWeb and Kepler Communications , requesting part of their spectrum rights in exchange for launch services.
While SpaceX denies these claims, evidence indicates that OneWeb agreed to “spectrum concessions” to secure necessary launches from SpaceX after losing access to Russian rockets.
A Web of Connections. This tactic places competitors in a challenging position. Analyst Tim Farrar describes this scenario as a “carefully choose” dilemma. Companies like Echostar or GlobalStar find themselves weighing the benefits of using SpaceX—despite the competitive edge it grants—against the option of higher costs and slower access with other launch providers.
Ast Spacmobile , which previously chose Blue Origin’s New Glenn rocket, now faces delays as that rocket won’t be ready in time, resulting in heavier-than-anticipated satellites waiting for deployment.
The Apple Paradox. In 2022, Musk offered Apple exclusive access to SpaceX’s services for $5 billion, a proposal Apple ultimately turned down. Instead, Apple forged a partnership with GlobalStar for its satellite emergency service. However, delays in GlobalStar’s satellite launches have inadvertently favored Starlink.
Explaining the delays and renegotiations surrounding launch contracts appears linked to Apple’s internal discussions about competing with SpaceX, which may have led to an eventual agreement for Starlink Direct-to-Cell on the iPhone 13 , incompatible with GlobalStar’s service. This situation has strategically benefitted Starlink in a highly competitive market.
The Giant Starlink. Ultimately, every launch of a competitor’s satellite becomes a tactical win for Elon Musk. Not only does SpaceX benefit financially from these operations, reinforcing the budget of a company whose income is nearing NASA’s, but it also secures vital resources for the future of global communications.
Image | SpaceX
In conclusion, as the landscape of satellite communications grows ever more competitive, the unorthodox alliances formed between giants like SpaceX and Amazon could redefine how we think about competition and collaboration in one of humanity’s most challenging realms.