Recently, the Via Satellite website has compiled the top ten events that will have the greatest impact on the satellite industry in 2021.
1. Commercial aerospace SPAC listing tide
Over the past few years, only venture capital has been able to invest in space startups. But in the last two years, some new space companies have rapidly entered the secondary open market after a series of mergers of special purpose acquisition companies (SPAC).
SPAC, also known as a blank check company, takes less time and has fewer reviews than a typical IPO process. Until 2020, SPAC is a rarely used financing method. But today, both in the commercial space sector and in other industries, SPAC has increased in popularity. The SPAC wave began in late 2020, when several startups such as Momentus and AST SpaceMobile announced their deals, but the SPAC wave culminated in 2021 as more mature players like Rocket Lab, Planet, and Spire joined the race.
These deals have led to compelling valuations, with Rocket Labs currently valued at $4.1 billion and planets valued at $2.8 billion. Some analysts question this, especially when investors disclose actual income, or lack thereof. Most industry observers see SPAC as an opportunity, but also note that these companies face high expectations that they will execute bold growth projections to justify valuations, even though they are all subject to scrutiny by public companies.
2. SpaceX, the $100 billion "centenarian"
In October, CNBC reported that SpaceX's valuation had reached $100 billion, making the company a "hundred-horned beast," meaning the valuation of 100 unicorn companies (unicorns generally refer to startups valued at more than $1 billion). The message was apparently deliberately leaked, as SpaceX is a private company and does not need to release financial information. But it represents how powerful SpaceX has become in the space industry and the private market. That's 33 percent higher than SpaceX's $74 billion valuation in February 2020.
SpaceX has a starlink constellation serving approximately 100,000 users, SpaceX's most core launch vehicle, which is responsible for transporting astronauts to and from the International Space Station (ISS) and is developing rockets designed to send astronauts back to the moon.
Whether SpaceX's rising valuation will lift up all commercial space companies is still inconclusive. But society has never had so much interest and investment in the space sector, but it remains to be seen what the company's dominance means for competition. Between launches, low Earth orbit (LEO) constellations, and space exploration, the question every business must answer is – can you beat SpaceX?
3. The industry calls for open standards for terrestrial networks
While the satellite ground technology sector has long relied on know-how, it is now undergoing major changes and there is a growing call for standardization. In September, the Digital Interface Standards Working Group's Communications and Power Industry (CPI) Benchmarking System, including Gilat, SES, ST Engineering iDirect, Wavestream and Data Path, jointly published an open letter calling for the opening of interface standards between satellite modems and outdoor devices.
In addition, this year, the Digital IF Interoperability (Difi) Consortium, under the auspices of the United Nations, announced the creation of the IEEE Industry Standards and Technology Organization (ISTO), which includes Hawkeye 360, Intelsat, KSAT, Kymet, Microsoft, and the U.S. Navy.
Both groups want to establish an interoperable digital interface/radio frequency (IF/RF) standard, based on the digital radio standard VITA 49.2, which is widely adopted by the industry. A standard based on VIA 49.2 will be tailored for satellite communications in order to achieve true interoperability.
Previously, industry insiders pointed out that open standards will stimulate related companies to create new technologies and compete with each other on new functions rather than proprietary systems. And, it will encourage customers to adopt virtualized modems. This specific interoperability standard is part of a broader call for standardization. As the industry changes, the ground section will have to change its approach, which is a step in that direction.
4. The OneWeb constellation is beginning to take shape
OneWeb has always been one of the most noteworthy companies in the satellite industry. From its early ambition to connect the world to the dramatic bankruptcy and restructuring of 2020. With the reversal of bankruptcy, the revived OneWeb continues to take shape in 2021, with its investment consortium made up of global telecom, government and satellite giants.
Over the past year, Eutelsat has invested $500 million to make traditional geostationary orbit (GEO) operators on par with the UK government and Japan's SoftBank. Bharti Global then invested another $500 million, doubling its investment to fully fund the first version of the constellation. South Korean tech company Hanwha Phasor also joined.
In an interview with Via Satellite earlier this year, CEO Neil Masterson emphasized what he sees as the importance of this cross-industry collaboration: "Co-innovating together to develop the best solutions for customers at the lowest possible cost is the way forward," Masterson said.
At the same time, OneWeb constellation has launched 358 satellites, reached a number of distribution agreements with AT&T and others, and launched user terminals to serve different types of users. Through an investment consortium of telecom, government, and satellite companies, OneWeb has consolidated its position to fulfill its mission of providing LEO connectivity.
Telesat invested $5 billion to build the LightSpeer constellation
Telesat is planning to build a satellite network, LightSpeed, to compete with OneWeb and SpaceX's Starlink, and will complete a merger with Loral Space Communications. The merger means Thatresat's shares will be traded on the NASDAQ and Toronto Stock Exchanges.
Telesat said: "We have begun to develop what we believe will be the world's most advanced low Earth orbit (LEO) satellite and integrated ground infrastructure, called Telesat Lightspeed, a platform designed to revolutionize the global broadband connection offering." "The project cost $5 billion. The move means that the MARKET IS BECOMING INCREASINGLY COMPETITIVE, with SpaceX's Starlink already in operation, OneWeb coming soon, and Amazon's ProjectKuiper now expected to be operational with two test satellites in 2022.
6. The CEOs of Eutelsat and Intelsat have resigned one after another
In October, the CEOs of two top satellite operators announced that they would be leaving their organizations. First eutelsat CEO Rodolphe Belmer announced that he would leave the company for French tech company Atos, then Intelsat CEO Steven Spengler decided to retire after the company completed its financial restructuring and appointed a successor.
By 2022, all eyes will be on Intelsat coming out of bankruptcy and the new changes that have taken place in the two companies' new leadership, both within and outside the industry.
7.Viasat acquires Inmarsat
Shortly after the restructuring of Intelsat and Eutelsat, Viasat issued a major announcement that marked more changes in the industry. Viasat will acquire Inmarsat for $7.3 billion in a deal that integrates two major satellite operators with broadband, mobile and defense businesses.
Viasat and Inmarsat have combined this combination as a combination that combines spectrum licensing in the Ka, L, and S bands, 19 satellites in service, and the potential of hybrid space and terrestrial networks.
The move comes as Viasat prepares to launch the viaSat-3 constellation for the first time, which has previously strengthened its market position through the acquisition of the European Broadband Initiative and RigNet. Meanwhile, under the leadership of new CEO Rajeev Suri, Inmarsat appears to be ready for the acquisition and has hired a raft of new executives and capital expenditure plans under the new CEO Rajeev Suri.
Both companies play an important role in the field of on-board connectivity (IFC), which can create a dominant consolidated company with operations in both the United States and Europe. Investors have questioned the deal, with Viasat shares down about 5 percent since the announcement, but that could be a major shift forward for the satellite industry.
8. Boris Johnson's Vision of "Galaxy Britain"
The UK released its first national space strategy this year, announcing its intention to become one of the world's top space economies. The strategy sets out the ambitions of Galaxy Britain, which aims to build launch capabilities in Cornwall and Sutherland, invest in military satellite communications, and support space-oriented venture capital funds.
The move was praised by local space companies such as Orbex and NanoAvionics, and the constituent Scotland subsequently released its own space strategy. While the UK has decades of space heritage, is known for its manufacturing capabilities, and made a surprise investment in OneWeb in 2020, this new strategy is further proof of its seriousness.
Now, the government is in the process of spending calculations, setting a budget for government space activities for years to come. In 2022, the UK wants to see homegrown space launches built and must show how it will deliver on its promise to be a bigger player in global space.
9. Technology demonstration promotes innovation forward
The past year has witnessed a number of technological milestones that have the potential to make satellites a more integral part of the global communications ecosystem.
Optical communications, or space lasers, are widely seen as the "next big thing" in satellite communications to enable faster image and sensor data transmission and secure communications. SpaceX, for example, began launching Starlink satellites equipped with optical inter-satellite links (OISLs) this year. Over the past year, Mynaric has aggressively moved to commercialize the technology through deals with Cloud Constellation, SpaceLink, Northrop Grumman, and Capella Space. While its terminal has not yet been validated on orbit, Mynaric is working to make optics an effective option in the near future.
Then in November, Isotropic Systems demonstrated its optical beamforming antenna, connecting it to both geostationary orbit (GEO) satellites and medium-Earth orbit (MEO) satellites. This has a huge impact on interoperability – if satellite networks can't communicate directly with each other, such antennas allow end users to leverage multiple networks at the same time. Larger deployments are planned for 2022.
Space sustainability also made significant progress during the year, including in-orbit validation by Astroscale for its end-of-life service ELSA-d satellite in August. ELSA-d successfully demonstrated the ability to capture spacecraft – CEO Nobu Okada called it "a wonderful first step in validating all key technologies" for end-of-life services.
The 10.billionaire crosses the threshold into space
This summer, Sir Richard Branson and Jeff Bezos hitched a ride on their respective rockets to the edge of space within weeks.
Branson took first place in this somewhat competitive race, and everyone changed their flight dates and made a duel statement about a specific point at the beginning of space. These milestones have caused different reactions. They raise important questions about who can go to space and whether space tourism is the best way some of the world's most powerful people should use their time.
While Branson/Bezos spaceflights have no particular relationship with satellites, the entire space value chain has been affected by praise and opposition. These billionaires' spaceflight comes at a time when the space industry is paying more attention to them than ever before and has more opportunities to tell their stories. "Why commercial spaceflight?" is a question that everyone should be prepared to answer in 2022.
This article is compiled from The Satellite Industry's 10 Most Impactful Events of 2021 published by Via Satellite.