The commercial space sector is witnessing major moves from two industry giants! According to the latest information, Elon Musk's SpaceX plans to launch its second-generation cellular "Starlink" satellite communication system by 2027, with the new system's overall capacity projected to increase over 100-fold compared to the first-generation satellite network, while data throughput capabilities will improve by more than 20 times. In January this year, the U.S. Federal Communications Commission (FCC) approved SpaceX's application to deploy an additional 7,500 second-generation Starlink satellites, further enhancing its global internet service capabilities. Meanwhile, SpaceX's competitor Blue Origin, the private space company founded by Jeff Bezos, announced on Wednesday (January 21) that it will launch over 5,400 satellites to build a new communication network. SpaceX: Second-Generation Starlink System Launching in 2027 Recently, Musk reposted a message shared by electric vehicle analyst Sawyer Merritt, stating: "Latest documents submitted to the FCC indicate that SpaceX plans to launch its second-generation Starlink satellite communication system in 2027." The message further revealed: "SpaceX's first-generation service already provides coverage for over 400 million people, with more than 6 million monthly active users. But this is just the beginning: SpaceX has also invested in spectrum resources that will enable it to launch a significantly enhanced second-generation direct-to-device system in 2027." Reports indicate that in September last year, SpaceX reached a $17 billion agreement with EchoStar to acquire radio spectrum for upgrading its cellular Starlink service. However, the transaction isn't expected to complete until November 30, 2027, allowing SpaceX to cover EchoStar's approximately $2 billion in debt interest cash payments. The company has the option to complete the acquisition earlier, though at a higher cost. SpaceX CEO Musk stated last fall that implementing this service depends on advancing within "approximately a two-year timeframe," with challenges focusing on two main aspects: on one hand, mobile phone manufacturers need to complete hardware adaptation by integrating EchoStar spectrum reception chips supporting 1.9GHz and 2GHz bands into terminal devices; on the other hand, SpaceX must launch next-generation satellites capable of utilizing the new spectrum resources, including a new system of 15,000 satellites still awaiting FCC approval. Despite these challenges, 2027 is not far away, marking SpaceX's plan to rapidly upgrade its cellular Starlink technology to address competitive pressure from rivals—including AST SpaceMobile and Apple partner Globalstar, which are developing their own satellite direct-to-phone services. Currently, through its partnership with T-Mobile, SpaceX already offers first-generation cellular Starlink service in the United States. This technology primarily targets areas with weak cellular network coverage, providing users with basic data connections including video calls, messaging, and application access, though available bandwidth remains relatively limited. In contrast, the second-generation cellular Starlink promises 5G-like connectivity. SpaceX noted in technical documents that the new system's total capacity will increase over 100-fold compared to the first-generation satellite network, with data throughput capabilities improving by more than 20 times. David Goldman, SpaceX's Vice President of Satellite Policy, stated: "But this is just the beginning: SpaceX has invested in spectrum resources that will enable it to launch a significantly enhanced second-generation direct-to-device system in 2027." SpaceX executives submitted this application to the FCC as the regulatory agency considers auctioning radio spectrum in the 3.98 to 4.2 GHz band (the "upper C-band") for next-generation wireless services. In the document, Goldman urged the FCC to allocate this spectrum for both "terrestrial and non-terrestrial networks" (including satellite services). Therefore, he called for the FCC to promote satellite service deployment in the C-band by reserving portions of the upper C-band spectrum for next-generation satellite uses through flexible utilization approaches. "The Commission can no longer treat satellite service as secondary or fanciful experimentation compared to terrestrial networks," Goldman added. "To ensure all Americans obtain ubiquitous and resilient network access, satellite coverage must become a core element in the Commission's planning for every terrestrial wireless band." If this deployment proceeds smoothly, it will strengthen SpaceX's competitive advantage in the satellite communication market and pose direct challenges to both traditional telecommunications providers and emerging low-Earth orbit constellation operators. As the 2027 timeframe approaches, spectrum integration processes and system development progress will become critical variables affecting strategic implementation. Blue Origin: Planning to Launch Over 5,400 Satellites On Wednesday, Blue Origin, the rocket company founded by Amazon founder Jeff Bezos, announced plans to launch over 5,400 satellites to create a new communication network. Named "TeraWave," this network will provide continuous global internet access and transmit massive data volumes at speeds far exceeding competitors'. TeraWave's core selling point is delivering symmetric data transmission speeds up to 6 Tbps (terabits per second) to any location on Earth, equivalent to 6,000 gigabit broadband connections running simultaneously. The company explicitly stated that this service will target enterprise-level customers including governments and data centers, not general consumers. By comparison, SpaceX's Starlink, which currently operates over 9,000 satellites in orbit, plans to launch gigabit-speed services this year. Some reports note that even after launching thousands of satellites, Blue Origin's orbital satellite count will remain significantly lower than SpaceX's Starlink, which dominates the satellite internet market. While Starlink, as a business division of Musk's rocket company SpaceX, currently provides internet and phone services to individual users, Blue Origin indicates that TeraWave will focus on data centers, enterprises, and government clients. Blue Origin claims its network can achieve maximum upload and download speeds of 6 Tbps, far exceeding current commercial satellite service rates. The company stated: "This network will serve tens of thousands of enterprise, data center, and government users who require stable network connections to ensure critical business operations proceed smoothly." Blue Origin announced plans to commence TeraWave satellite launches by the end of 2027. Reports indicate the TeraWave architecture consists of 5,408 satellites in low-Earth orbit and medium-Earth orbit interconnected by optical links. This multi-orbit design enables ultra-high-speed connections between global hubs and distributed multi-gigabit user connections, particularly in remote, rural, and suburban areas where diverse fiber paths are costly, technically unfeasible, or slow to deploy. TeraWave enterprise-level user and gateway terminals can be rapidly deployed worldwide and interface with existing high-capacity infrastructure, providing additional routing diversity and enhancing overall network resilience.
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