The billionaire's Starlink communications network is facing significant challenges to its leadership in high-speed satellite internet, particularly from a state-supported competitor in China and another service backed by Amazon founder Jeff Bezos.
In November, Shanghai-based SpaceSail secured an agreement to expand into Brazil and revealed it is in discussions with over 30 nations. Just two months later, it commenced operations in Kazakhstan, as reported by the Kazakh embassy in Beijing.
Additionally, Brasília is engaged in negotiations with Bezos's Project Kuiper internet service and Canada's Telesat, according to a Brazilian official involved in the discussions, who requested anonymity to speak candidly about the ongoing talks. This information is being disclosed for the first time.
Since 2020, Starlink has deployed more satellites into low-Earth orbit (LEO)—at altitudes below 2,000 km—than all its competitors combined. Satellites at these low altitudes are capable of transmitting data with remarkable efficiency, delivering high-speed internet to remote areas, maritime vessels, and military operations.
Musk's dominance in the space sector is perceived as a challenge by Beijing, which is heavily investing in rival technologies and funding military research aimed at tracking satellite constellations, as indicated by Chinese corporate filings and academic studies that have not been previously disclosed.
Last year, China set a record by launching 263 LEO satellites, according to data analyzed by astrophysicist Jonathan McDowell and tech consultancy Analysys Mason.
The Brazilian government has welcomed the rise of competition to Starlink, as it seeks to provide high-speed internet access to remote communities, despite having previously clashed with Musk over commercial and political issues.
SpaceSail chose not to provide comments in response to Reuters' inquiries regarding its expansion strategies. A publication affiliated with China's telecommunications regulator lauded the company last year, describing it as "capable of transcending national boundaries, penetrating sovereignty and unconditionally covering the whole world ... a strategic capability that our country must master."
Kuiper, Telesat, Starlink, and Brazil's communications ministry did not reply to requests for comments.
Few of Elon Musk's global competitors share the same level of ambition as SpaceSail, which is under the control of the Shanghai municipal government. The company has announced intentions to launch 648 low Earth orbit (LEO) satellites this year, with a goal of deploying up to 15,000 by 2030. In comparison, Starlink currently operates around 7,000 satellites and aims to have 42,000 in orbit by the decade's end, according to McDowell.
SpaceSail's future launches will form the Qianfan, or "Thousand Sails," constellation, representing China's inaugural international venture into satellite broadband. Additionally, three other Chinese satellite constellations are in the works, with plans for Beijing to deploy 43,000 LEO satellites in the coming years, alongside investments in rockets capable of launching multiple satellites.
"The endgame is to occupy as many orbital slots as possible," stated Chaitanya Giri, a space technology expert at India's Observer Research Foundation.
China's rapid efforts to dominate lower-Earth orbit have raised alarms among Western policymakers, who express concerns that this could enhance the reach of Beijing's internet censorship. Researchers at the American Foreign Policy Council suggested in a February report that Washington should bolster collaboration with nations in the Global South to effectively challenge China's expanding influence in the digital realm.
The researchers highlighted Qianfan's significance as an integral element of the space aspect of China's Belt and Road Initiative. This $1 trillion global infrastructure development strategy is a hallmark of Chinese leader Xi Jinping's policies, although critics argue it primarily serves as a means to enhance Beijing's geopolitical reach.
China's commerce ministry and telecommunications regulator did not provide comments when approached. In response to inquiries from Reuters, China's foreign ministry stated that while it was not informed about the specifics of SpaceSail and the expansion of Chinese LEO satellites abroad, Beijing is committed to pursuing space collaboration with other nations for mutual benefit.
SpaceSail aims to deliver dependable internet access to a broader audience, especially in remote regions and during recovery efforts following emergencies and natural disasters.
WILD WEST
The swift growth of Starlink and its deployment in the Ukraine conflict have drawn the interest of military researchers at China's National University of Defense Technology, leading to substantial state investment in competing satellite networks.
Hongqing Technology, established in 2017 and working on a constellation of 10,000 satellites, recently secured 340 million yuan from predominantly state-affiliated investors.
Last year, SpaceSail obtained 6.7 billion yuan ($930 million) in a funding round led by a state-owned investment fund aimed at enhancing China’s manufacturing capabilities.
Chinese researchers, many of whom are linked to the People's Liberation Army, have also begun to focus on this sector. In 2023, China registered a record 2,449 patents related to LEO satellite technology, a significant increase from 162 in 2019, as reported by Anaqua’s AcclaimIP database.
Many of these patents emphasize cost-effective satellite networks and low-latency communication systems, reflecting China's determination to bridge the technological divide.
The space industry is rapidly evolving and actively engaging in experimentation, according to Antoine Grenier, the global head of space at Analysys Mason consultancy. "Innovators are taking advantage of this relative freedom to establish significant positions before regulations tighten, reminiscent of the wild west."
Some of China's research seems to focus on Starlink, with a patent application linked to the PLA characterizing the U.S. system as essential for reconnaissance and military communications, while also presenting "threats to network, data, and military security."
Additionally, Beijing is working on methods to monitor and track the Starlink constellation. Researchers from two PLA-affiliated institutions reported in a January study published in a Chinese engineering journal that they have developed a system and algorithm for tracking megaconstellations like Starlink's, inspired by the hunting techniques of humpback whales, which encircle their prey and create spiraling bubbles.
"With the growing trend of space militarization, developing tools to monitor and track these megaconstellations is critically important," the researchers stated.