Space-based Internet: The new space race for high-speed Internet

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  Quantumrun Foresight
• July 29, 2022

Insight summary

The satellite industry has seen increased private-sector competition in providing global Internet coverage through low Earth orbit constellations. This shift benefits remote areas with improved connectivity for education, telemedicine, and commerce, but space traffic management and government regulations pose challenges. The implications include cultural exchange, potential restrictions by authoritarian governments, and the need for international cooperation in space governance.

Space-based Internet context

Since 2020, the competition in the satellite private sector has intensified, with various technology and aerospace companies launching their satellite constellations into low Earth orbit. These companies aim to provide global Internet coverage, especially in areas where traditional, land-based Internet infrastructure is lacking or non-existent. The race to dominate low Earth orbit highlights a shift in the industry, moving from government-dominated space programs to more private, commercial ventures.

One of the key distinctions in satellite Internet technology lies in its operational mechanics compared to traditional, tower-based Internet. Satellite Internet does not rely on physical cables or require telecommunications intermediaries. Instead, it operates by transmitting signals directly to and from satellites in low Earth orbit, approximately 480 kilometers above the Earth's surface. This proximity to the Earth's surface results in lower latency, meaning there's less delay between a user sending a request and receiving a response. In contrast, geostationary satellites, positioned about 42,000 kilometers from Earth, offer broader coverage but suffer from higher latency due to their greater distance.

The practical implications of this technology are significant for end-users. Satellite Internet providers typically send customers a kit containing a satellite dish and antenna, which are used to connect to the space-based Internet. This setup allows users in remote or underserved areas to access high-speed Internet, opening up opportunities for education, business, and communication that were previously limited. Furthermore, the mobility of low Earth orbit satellites, which can move and interact within their constellations, provides a more dynamic and adaptable Internet service compared to the stationary nature of geostationary satellites. 

Disruptive impact

The expansion of space-based Internet services like SpaceX's Starlink and Amazon's Project Kuiper signifies a notable shift in global Internet accessibility. With Starlink's aggressive expansion, aiming to launch up to 42,000 satellites by mid-2027, remote and rural areas previously underserved by traditional Internet providers are gaining access to high-speed connectivity. This increased access can lead to significant improvements in areas like online education, telemedicine, and digital commerce, especially in regions where such opportunities were limited. However, Elon Musk, founder of SpaceX, has stated that Starlink is not intended to compete in densely populated urban areas, acknowledging the technology's limitations in supporting large numbers of users in confined spaces.

Competitors like Project Kuiper and ViaSat are also contributing to this evolving landscape. Project Kuiper's plan to launch 3,236 satellites by mid-2026 represents another major step towards widespread Internet coverage. ViaSat's approach, which includes launching low Earth orbit units to complement their existing geostationary satellites, offers users the flexibility to switch between stationary and roaming satellites. This adaptability is vital in reducing service outages and ensuring consistent Internet access. 

However, the rapid increase in satellite launches raises concerns about space traffic and the potential for collisions. The prospect of thousands of satellites from different companies sharing low Earth orbit space brings to light the need for effective space traffic management. Critics point out that satellites that malfunction or "go rogue" could increase the risk of collisions, not just with other satellites, but also with manned spacecraft. This situation requires international cooperation and the development of strict guidelines and technologies for satellite tracking and collision avoidance. 

Implications for space-based Internet

Wider implications for space-based Internet may include:

• Previously isolated communities in remote locations, including mountainous and island-based areas, being able to access reliable Internet connections, enabling them to participate in the digital age and gain access to online services ranging from e-commerce to healthcare.


• Remote communities gaining exposure to foreign cultures and norms through the Internet, fostering cultural exchange and broader understanding between different groups worldwide.


• Authoritarian governments considering new legislation to restrict their citizens' access to these services, as they have limited control over this technology.


• More sustainable consumption and production patterns, with a greater push toward implementing circular economy principles in industries that rely on digital connectivity for their operations.


• The push for global regulatory standards resulting in international cooperation on space governance, paving the way for more collaborative efforts in space exploration and research.


• Opportunities to leverage the technology for businesses' own purposes, leading to shifts in political power dynamics and cybersecurity concerns.

Questions to consider

• What other impacts might space-based Internet impact communities living in remote areas or developing nations?


• How might space-based Internet impact the business models of terrestrial Internet providers?