Tag: ViaSat

New Viasat geosynchronous communications satellite in trouble

9:31 am

Launched in April, a new geosynchronous communications satellite for the company Viasat is in trouble, with “an unexpected event” occurring during the deployment of its antenna reflector.

Shares of Viasat fell as much as 36% in early trading Thursday, putting it on track for its biggest one-day loss since going public in December 1996. Viasat did not disclose the identity of the reflector’s manufacturer in its release. Dankberg said his company is “working closely” with the manufacturer to resolve the problem. A Viasat spokesperson confirmed to CNBC that the manufacturer is a top aerospace and defense company – but noted that it is not Boeing, which built the 702MP+ bus that is the spacecraft’s structure and power.

The company is under severe competitive pressure from the Starlink and OneWeb satellite constellations. This loss could be crippling, even if it obtains a full insurance payment of $420 million.

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Viasat completes merger with Inmarsat

9:22 am

After two years dealing with regulatory delays, Viasat has finally completed its purchase of Inmarsat, producing a single company that has 8,000 employees and a fleet of nineteen operating satellites.

The key quote from the link however is this:

Their merger announcement sparked additional consolidation plans as operators look to bolster their defenses amid a growing competitive threat from Starlink in the satellite broadband market. Eutelsat announced plans to buy OneWeb in November 2022 and hopes to complete its merger this summer. SES and Intelsat confirmed March 29 they were in talks about merging, although they have not provided a meaningful update since then.

In other words, the older geosynchronous satellite companies are consolidating because of the competition posed by SpaceX’s Starlink system, which also suggests these companies have never competed very aggressively against each other to cut costs. Now that someone new (SpaceX) has arrived doing that, they find their only option is to merge. Apparently the corporate culture in each separate company finds cutting costs difficult. Merger appears to be their only avenue for doing so.

I wonder what will happen to these old satellite companies when (or if) Amazon finally begins launching and operating its own Kuiper constellation, in direct competition with SpaceX. Unless they finally begin to offer a competitive product at a competitive price, I expect after consolidation we will begin to see bankruptcies.

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UK regulators give okay on Viasat’s purchase of Inmarsat

9:46 am

After months of delay, the United Kingdom’s Competition and Markets Authority (CMA) regulators has finally admitted that Viasat’s purchase of Inmarsat would not reduce competition in the communication satellite industry, and has approved the purchase unconditionally.

The evidence analysed by the panel shows that, while Viasat and Inmarsat compete closely– specifically in the supply of satellite connectivity for wifi on flights – the deal does not substantially reduce competition for services provided on flights used by UK customers.

The evidence also shows that the satellite sector is expanding rapidly – a trend that is set to continue for the foreseeable future. This is due to increased demand for satellite connectivity, driven largely by the ever-growing use of the internet by business and consumers.

The CMA press release is a classic of bureaucracy blather. Essentially, it tries to make it sound like this agency did lots of difficult hard work to discover what is patently obvious, that without this merger these two companies will almost certainly not be able to compete with the emerging new satellite communications companies coming on line.

The best thing that the UK could do to encourage competition and new industries in the UK would be to defund this agency, now. Its existence accomplishes nothing other than to stand in the way.

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Viasat drops launch contract with Ariane-6

9:03 am

With SpaceX’s Falcon Heavy having just completed the first of three launches for Viasat’s new geosynchronous constellation of communication satellites, the satellite company has announced that it is cancelling its launch contract with Ariane-6 for the third launch.

The decision means the launch contract is up for grabs for the third ViaSat 3 internet satellite, the last of a three-satellite constellation Viasat is deploying to provide global broadband connectivity from space.

Viasat announced in 2018 it selected SpaceX, United Launch Alliance, and Arianespace to each launch one ViaSat 3 satellite, awarding launch contracts to three industry leaders.

The ULA launch, on its Atlas-5 rocket, is still scheduled for either late this year or early next.

The development of Ariane-6 however is years behind schedule. Furthermore, Arianespace has given priority on Ariane-6 to all of the ESA launches that formerly were going to be launched on Russian Soyuz rockets, further delaying Viasat’s launch.

For Viasat, the delays have become unacceptable, and it has now opened that third launch to bidding. Though both ULA’s Vulcan and Blue Origin’s New Glenn rockets could do the job, neither is operational either. It appears SpaceX’s Falcon Heavy is the only rocket available and is therefore almost certain to get the contract, a conclusion further confirmed by the timing of this announcement, just prior to that successful Falcon Heavy launch.

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SpaceX’s Falcon Heavy completes second launch in 2023

9:08 pm

SpaceX today successfully placed a Viasat communications satellite into geosynchronous orbit using its Falcon Heavy rocket, completing its second launch in 2023. Also on board were two smallsats.

The company did not recover either side booster or the core stage in order to give the rocket the maximum lift to put Viasat’s satellite into its proper orbit. With this flight, the two side boosters had successfully completed eight and three missions during their lifespan.

The leaders in the 2023 launch race:

28 SpaceX
16 China
6 Russia
3 Rocket Lab
3 India

American private enterprise now leads China 31 to 16 in the national rankings, and the entire world combined 31 to 28. SpaceX by itself trails the entire world, including American companies, 28 to 31.

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UK bureaucracy provisionally clears Viasat-Inmarsat merger

9:40 am

We’re here to help you! The United Kingdom’s Competition and Markets Authority (CMA) has now provisionally approved the merger deal between the two communications satellite companies Viasat and Inmarsat by admitting the obvious, that the deal will do nothing to reduce competition in the presently thriving communications satellite industry.

Over the past 4 months, an independent CMA panel has gathered and scrutinised a wide range of evidence in order to better understand the sector, as well as the potential impact of the deal. This included internal documents from Viasat and Inmarsat, as well as the companies’ competitors (including their plans for future expansion); evidence from airlines; the CMA’s own analysis of sector conditions – and how these could change.

…The CMA’s investigation into the Viasat/Inmarsat deal has provisionally found that, while the companies compete closely in the aviation sector – specifically in the supply of satellite connections for onboard wifi – the deal does not substantially reduce competition for services provided on flights used by UK customers.

Duh. In other words, these bureaucrats spent four months determining what is self-evident to every person who pays any attention to the business of space. Furthermore, both companies are badly threatened by the new players in this industry, like OneWeb and Starlink. This dithering by bureaucrats threatens their survival, as these older companies want to merge to give them the resources to better compete. Being forced to sit and wait only increases the chances that both will go bankrupt, thus reducing competition, the very thing this government agency is supposed to encourage and protect.

Not that the CMA has come to any real decision yet. As its press release notes so nobly, “Today’s findings are provisional, and the CMA will now consult on its findings and listen to any further views before reaching a final decision.”

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Federal court rejects lawsuit by Dish/Viasat against Starlink

9:11 am

A U.S. appeals court has rejected a lawsuit by Starlink competitors Dish and Viasat that had claimed a plan by SpaceX to deploy some satellites in a lower orbit would have “potential environmental harms when satellites are taken out of orbit; light pollution that alters the night sky; orbital debris; collision risks that may affect Viasat; and because ‘Viasat will suffer unwarranted competitive injury.'”

This decision was the second time the courts have rejected this lawsuit, which by Viasat’s own words above is expressly designed mostly to block a competitor, not protect the environment or reduce space junk.

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UK regulators to investigate Viasat-Inmarsat merger

9:03 am

The United Kingdom’s Competition and Markets Authority (CMA) yesterday opened an investigation into the purchase of InMarsat by Viasat, announced in November ’21, to see it that merger would “result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.”

This investigation will clearly delay the merger. It also appears somewhat counter-productive, considering that Inmarsat has been having trouble making money in recent years due to the market’s shift from its big geosynchronous satellites to constellations of smallsats in low Earth orbit, such as SpaceX’s Starlink. Viasat meanwhile has been desperately trying to block Starlink because of that very competitive threat.

By merging, these two satellite companies might survive and compete with the new orbital constellations. Otherwise, they might both go out of business, thus reducing competition. It seems the CMA will be shooting itself in the foot if it blocks this merger.

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The battlelines and alliances shift over big satellite constellations in space

9:41 am

Two stories today show that the competition for frequency use and orbital territory in space are shifting, partly because of international politics and partly due to changes in technology.

First the harsh conflict between OneWeb and Starlink over the positioning and frequency use of their constellations in orbit now appears to have vanished.

The companies have written a joint letter to the U.S. Federal Communications Commission (FCC), declaring harmony in low Earth orbit (LEO) for spectrum coordination between their respective current and next generation broadband constellations.

In the letter, which is dated June 13, SpaceX and OneWeb request that the FCC disregard previously filed dissenting comments regarding spectrum coordination in LEO. SpaceX and OneWeb both submitted proposals for their first-generation internet constellations to the FCC in 2016, followed by a second round of proposals in 2020 for each company’s next-generation broadband satellites. Simultaneously, both SpaceX and OneWeb submitted complaints with the FCC in an attempt to get a leg up on each other. Now, it seems the companies are operating on friendlier terms.

The article I think correctly speculates that this new-found cooperation probably resulted from OneWeb’s need to use SpaceX Falcon 9 rockets to get its satellites in orbit, caused by Russia’s confiscation of 36 OneWeb satellites in response to Europen sanctions over the Ukraine War. During the launch negotiations I am sure SpaceX demanded both iron out their differences relating to the satellite constellations. While SpaceX might have been able to gain some advantages in that negotiation due to its strong position, I also suspect that OneWeb has not been hurt in any major way.

In the second story, SpaceX ramped up its opposition to a Dish 5G system in a wavelength used by its Starlink satellties.
» Read more

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Viasat once again demands government block its competitor Starlink

9:50 am

In a letter to the FCC submitted on May 2, 2022, Viasat once again demanded the government block the deployment of SpaceX’s full 30,000 Starlink satellite constellation.

SpaceX shouldn’t be allowed to greatly expand its Starlink network while light pollution issues surrounding its deployed satellites remain unresolved, Jarrett Taubman, Viasat vice president and deputy chief of government affairs, said in a letter to the regulator.

While calls for a thorough environmental review that Viasat made for Starlink’s current generation of satellites in December 2020 were largely rejected, Taubman said SpaceX’s plan to grow the constellation by seven times “would have significant aesthetic, scientific, social and cultural, and health effects on the human environment on Earth.”

In other words, rather than try to compete with SpaceX, Viasat wants the government to squelch that competition. Though Viasat’s previous complaints have been rejected entirely, there is no guarantee that the Biden administration will continue to reject them. Recent evidence suggests instead that it will instead use this complaint as another opportunity to limit SpaceX’s operations, for political reasons.

Meanwhile, the only possible harm to Earth the full Starlink constellation might do is cause a limited interference in ground-based astronomy. Since astronomers have made so little effort to get their telescopes into orbit, above such interference, few should sympathize with them. If anything, Starlink should be the spur to get all of its telescopes off the ground and into space. Astronomers will not only avoid light interference from Starlink, they will get far better data without the atmosphere smearing their vision.

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NASA awards contracts to six companies for its future orbital communications

9:56 am

Capitalism in space: NASA has awarded development contracts to six different companies to test the technology for providing the agency orbital communications for its manned missions, replacing the NASA-built TDRS satellite constellation.

In addition to SpaceX and Project Kuiper, the contractors include U.S.-based ventures representing Inmarsat, SES, Telesat and Viasat. Each venture will be required to complete technology development and in-space demonstrations by 2025 to prove that its system can deliver robust, reliable and cost-effective services — including the ability for new high-rate and high-capacity two-way links.

NASA would follow up by negotiating long-term contracts with multiple vendors to acquire services for near-Earth operations by 2030, while phasing out satellite communications systems owned and operated by the space agency.

Because NASA’s own station will likely be gone when these new in-space communications constellations become operational, their likely customers will not be NASA but the private space stations now under development. NASA is thus accepting responsibility for paying the cost for getting this communications need developed, for all the private companies. While the private space stations should eventually pay for using and building these constellations, it makes sense for NASA to get this started. No one company could likely afford or even be willing to pay the entire cost, and getting them all to work out an arrangement now would be difficult. NASA in turn can get it done now, and then later negotiate contracts with the private stations to pay for its construction and use.

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Viasat to buy Inmarsat for $7.3 billion

9:35 am

Two long time traditional communication satellite companies today announced a merger, with the U.S.-based Viasat to buy the UK-based Inmarsat for $7.3 billion.

In a surprise move, California-based Viasat this morning announced a plan to acquire UK-based Inmarsat for a cost of some $7.3 billion — potentially creating a commercial satellite communications behemoth worth $4.1 billion in 2021 revenue, of which 40% is in government sales, including to the Defense Department.

While the acquisition will require approval from regulators, the combined company already is planning an expansion of its on-orbit assets, including two polar orbiting satellites that can bring capacity to the Arctic.

The bulk of business for both companies has in recent years been government military contracts, launching geosynchronous communications satellites. Both however have been under strong competitive pressure from the newer satellite constellations in lower orbit. Additionally, the push within the Space Force to shift from single large satellites to many redundant smallsats has put pressure on both companies.

This merger suggests a consolidation is occurring in these big old satellite companies as they struggle to adjust to a changing satellite market. Viasat for example was founded in 1986, while Inmarsat began in 1979, with both companies exclusively launching the traditional geosynchronous communications satellites. Both now are faced with new technologies in low Earth orbit, which has many advantages over high geosynchronous orbits. They need to adapt and change, or die.

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Inmarsat to launch new low orbit communications satellite constellation

10:23 am

Capitalism in space: Inmarsat announced yesterday that it plans to launch a 150 satellite constellation in low Earth orbit to supplement and improve its already orbiting communications satellites in high geosynchronous orbit.

The company is investing $100 million over the next five years to lay the groundwork for deploying 150-175 LEO spacecraft.

They aim to join satellites Inmarsat has in geostationary and highly elliptical orbits from 2026. Inmarsat, which currently operates 14 satellites, is also on track to add five new GEO and two HEO spacecraft to its network over the next five years.

Its incoming multi-orbit constellation, called Orchestra, seeks to improve latency, network speeds and resiliency for communications services across its core maritime, aviation, government and enterprise markets.

This new constellation is also an effort by Inmarsat to keep its communications product competitive against the newer constellations being launched by SpaceX (Starlink) and OneWeb.

For the space launch industry, this just means more launches, more demand for rockets, and more money to be made.

Note that Inmarsat’s approach here is the correct way to respond to competition. Rather than try to squelch your competitors using government regulation, as Viasat is attempting, Inmarsat is instead up its game, improving its product, and thus matching the challenge its competitors are offering it.

One last question: Will this new constellation, set to be operational by ’26, get there before Amazon’s long promised Kuiper constellation? Right now I’m willing to bet that it will, considering how slow Amazon has been in developing that system.

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Court rejects Viasat’s effort to stop SpaceX Starlink launches

9:31 am

Capitalism in space? A three-judge panel on July 20, 2021 rejected Viasat’s request for a temporary injunction that would have stopped all SpaceX Starlink launches until Viasat’s lawsuit against that constellation is settled.

While this decision does not settle the lawsuit, it allows SpaceX launches to continue, and likely cause the case to be expedited in the courts. The decision also suggests that the court does not favor Viasat’s claims, which are somewhat dubious on their face, and appear designed merely to shut down a successful competitor through the use of the courts.

Viasat alleged that the FCC did not comply with the National Environmental Policy Act (NEPA) when it approved SpaceX satellite launches because the commission “refused to conduct any environmental assessment.” Viasat told the DC Circuit court that SpaceX launches should be halted because of potential environmental harms when satellites are taken out of orbit; light pollution that alters the night sky; orbital debris; collision risks that may affect Viasat; and because “Viasat will suffer unwarranted competitive injury.”

The FCC by the way disputes Viasat’s claims, and filed its own brief defending SpaceX.

Viasat’s real concern is that its satellite internet service will be considered inferior to SpaceX’s and will thus lose customers to it. Too bad. Competition means you step up your game and do better, not go to court to try to shut down your opposition.

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SpaceX loses a launch payload

10:11 am

In the heat of competition: Because of delays, a satellite company has shifted its launch vehicle from SpaceX’s Falcon Heavy to Arianespace’s Ariane 5

The company, ViaSat, still has a contract with SpaceX to use Falcon Heavy to launch later satellites, but they decided they could no longer wait and needed to get the satellite in orbit by 2017, something that SpaceX could no longer guarantee. They had to pay more to fly on Ariane 5, but it appears they were able to negotiate a price break with Arianespace to close the deal.

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