(Reuters): Amazon's Project Kuiper and a Chinese state-backed venture are two of the competitors threatening Elon Musk's Starlink network's hegemony in high-speed satellite internet services.  The contest marks a change in the satellite communications sector, which has been dominated by Starlink's explosive growth.

A significant Chinese rival, SpaceSail, based in Shanghai, signed a deal in November to join the Brazilian market and is presently negotiating with over 30 nations. The Kazakh embassy in Beijing acknowledged that the corporation had started operations in Kazakhstan just two months later.

In the meantime, a Brazilian official participating in the negotiations disclosed that the Brazilian government is in talks with Canada's Telesat and Jeff Bezos's Project Kuiper. This trend, which was originally reported, shows that new competitors are gaining ground on Starlink in the market.

Since its 2020 debut, Starlink has launched more low-Earth orbit (LEO) satellites than all of its competitors combined. These satellites, which operate below 2,000 km altitude, allow extremely efficient data transmission for military operations, maritime enterprises, and remote communities.

 However, Beijing is concerned about Starlink's dominance, which has caused rival networks' spending to skyrocket.   Furthermore, China is actively funding research on tracking satellite constellations, according to previously unreported academic papers and corporate records.

Astrophysicist Jonathan McDowell provided figures, and consulting firm Analysys Mason noted that China's record-breaking launch of 263 LEO satellites last year showed how focused the country is on these spacecraft.   Beijing's resolve to exert a major impact on the satellite broadband industry is evident from this increase.

More competition in the satellite internet industry has been welcomed in Brazil as it seeks reliable service for isolated areas.   Other suppliers are welcomed by the government, which has consistently disagreed with Musk on commercial and political issues.

However, a report supervised by China's telecom watchdog said SpaceSail has the ability to "transcend national borders, penetrate sovereignty, and provide global coverage without restrictions." The business has not commented on its expansion intentions.  It also underlined how important it is for China to build this strategic capacity.

Neither Kuiper, Telesat, Starlink, nor Brazil’s communications ministry have responded to inquiries regarding these market developments. However, the increasing number of competitors suggests a growing diversification of the satellite internet industry.  

In contrast to other up-and-coming competitors, Shanghai city government-owned SpaceSail has ambitious growth aspirations. The company intends to deploy 648 LEO satellites by 2024 alone, and up to 15,000 by 2030. On the other hand, Starlink plans to increase its fleet from roughly 7,000 satellites to 42,000 by the end of the decade.

The "Thousand Sails" (Qianfan) constellation will ultimately be formed by SpaceSail's network, marking China's first global satellite broadband expansion. Beijing is developing three other constellations and intends to launch 43,000 LEO satellites in the future years.

Western politicians are apprehensive about China's entry into low-Earth orbit because they fear Beijing's growing satellite presence could enable it to extend its internet control regulations outside of its borders. These concerns have led U.S. think tanks to call for greater cooperation with poorer nations in order to counter China's digital hegemony.

The American Foreign Policy Council said in February that Qianfan is an important component of China's broader Belt and Road Initiative. The trillion-dollar infrastructure project has drawn criticism for purportedly being used as a geopolitical instrument to increase China's global influence.

The foreign ministry said that China seeks space cooperation for mutual benefit, but the country's telecom regulator and commerce ministry have not responded to these developments. Beijing has given neither specifics on SpaceSail's worldwide development nor its planned LEO satellite.

SpaceSail has gained fame for providing communities with reliable internet access, especially for disadvantaged communities and those affected by natural disasters. The firm states that such a satellite net will aid improve recovery efforts in emergencies.

Starlink’s rapid expansion and its role in Ukraine’s war efforts have attracted attention from military researchers in China. The National University of Defense Technology has led significant state-backed funding efforts to develop competing satellite networks.  

A Chinese startup called Hongqing Technology, which plans to build a network of 10,000 satellites, recently raised about 340 million yuan from primarily state-backed investors.  This expenditure demonstrates China's determination to subvert Starlink's hegemony.

 Similarly, a state-owned investment fund that aims to improve China's manufacturing capabilities provided support for SpaceSail, which raised 6.7 billion yuan ($930 million) last year.  This substantial financial backing demonstrates Beijing's emphasis on satellite technology.

Research institutes in China, especially military ones, have accelerated the development of new satellites. The country published an all-time high of 2,449 patents related to LEO satellite technology in 2023, compared to a mere 162 in 2019. 

Many of these patents involve ultra-low-latency communication systems and low-cost network deployments, suggesting that China is eager to catch up to foreign competition with urgency. This technology is thought to be central to making China a world leader in satellite-based services.

Antoine Grenier, a space industry expert at Analysys Mason, observed the speedy change in the satellite sector, leading companies to compete for essential orbital places before regulatory concerns set in. He likened the current stage to a "wild west" in which pioneers abuse the few regulations.

Some Chinese research initiatives appear to be mainly targeting Starlink. A defense patent application by the People's Liberation Army (PLA) states that Starlink poses security threats as it is critically involved in military communications as well as intelligence tasks.

Beijing is also working on devices to monitor the expanding satellite network of Starlink. An algorithm created to monitor massive constellations like Starlink's was recently described in a study published by researchers from PLA-affiliated institutes. The way humpback whales use spiraling bubbles to enclose prey served as the model for their tracking technique.

With space increasingly becoming a battleground for technological and military dominance, China’s investment in satellite tracking underscores its strategic approach to competing with the United States. The ability to monitor and potentially counter satellite networks is now a priority for Beijing.

Starlink must contend with a more competitive and politically volatile environment as it grows. The future of high-speed satellite internet is expected to become more competitive than ever before as China, Amazon, and other international competitors continue to expand their own satellite networks.

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