To keep up with Elon Musk’s Starlink and the U.S., China plans to launch thousands of broadband satellites into low-Earth orbit. Of the roughly 8,000 functioning satellites in orbit, about 55% belong to SpaceX’s Starlink. China is making strides as more satellite companies like SatNet are getting more funding and making advancements.

WSJ explores how broadband satellites work and whether China can secure its spot in a crowded stretch of space.

0:00 China building its capabilities
1:03 How broadband satellites work
2:46 China’s space sector
4:55 Global expansion of satellite broadband
6:32 Overcrowding in low-Earth orbit

U.S. vs. China
This original video series explores the rivalry between the two superpowers’ competing efforts to develop the technologies that are reshaping our world.

#SpaceX #China #WSJ

362 million people don't have internet access in China.

That's roughly 30 million more people than the entire U.S.

But this rocket holds a possible solution to help China close the gap.

Inside it are low-Earth orbit satellites capable of providing high-speed internet access even in remote areas.

In China, this technology is still experimental.

But Starlink, a subdivision of the American company SpaceX, has already launched 4, 768 of them, making it the leader across the globe.

Although space is vast, these satellites operate in a specific area that's quickly getting more crowded.

To ensure its place, China is building up its capabilities.

Just 2 decades ago, 59.1 million people in China were online, just 4.6% of its population then.

Now it's over 1 billion people, 74% of the population.

So is the country known for its rapid development, capable of rivaling Starlink?

Of the roughly 8, 000 functioning satellites currently in orbit, about 55% belong to Starlink.

And the position of its satellites is key.

For decades, satellite internet providers relied on geostationary satellites.

These satellites are far away, about 22, 000 miles above the Earth's surface.

That distance lets them cover a large area and reach remote parts of the globe.

But it takes longer for data to travel between the satellite and the user.

This means the broadband has high latency and slower speeds.

Often, geostationary satellites offer speeds at least 25 megabits per second, which is enough to stream in HD and can support about 1 to 3 devices.

But satellites in low-Earth orbit, or LEO, are much closer, no more than 1, 200 miles from Earth's surface.

This means that while a LEO satellite can't cover as much area as a geostationary satellite, it can provide more stable and faster internet speeds.

Though SpaceX got its start launching rockets, it has built up a big business selling broadband powered by LEO satellites.

SpaceX manufactures the satellites and launches them with its own Falcon 9 rockets.

And Falcon 9 boosters, the part that blasts the rocket off the ground, are reusable, saving SpaceX money on launch costs.

They have a very capable launch division that is regularly blasting satellites off for customers, for governments, and for itself.

And it can launch dozens of satellites into low-Earth orbit per trip.

In 2014, China opened its space sector up to private investment.

5 years later, startups in China received over $314 million in funding.

The only country that attracted more startup funding was the U.S.

In the same year, SpaceX alone received $962 million.

To be more self-sufficient, China has been investing in key tech like Leo Satellites.

In 2021, it established SatNet, a state-owned company it hopes will streamline the process to launch satellites and form a broadband network.

So far, China says it will build at least 7, 800 satellites.

Plus, the China Aerospace Science and Technology Corporation and the China Aerospace Science and Industry Corporation have each launched experimental satellites into low-Earth orbit.

And startup GalaxySpace launched several operational satellites last year to begin its 1, 000-satellite constellation.

But so far, no enterprise in China has created a rocket to launch these satellites that's as advanced as the Falcon 9.

However, Beijing Tianbing Technology appears to be getting closer.

While the company doesn't have a reusable rocket yet, it sent a liquid fuel rocket into orbit for the first time earlier this year.

Experts say this is a crucial step to creating a reusable rocket.

Ultimately, the company wants to develop rockets that can deploy up to 60 satellites in a single launch, similar to Falcon 9's capabilities.

It's not easy to get off of Earth and deploy hundreds or thousands or tens of thousands of satellites into that part of space.

You need a rocket that can make those trips over and over and over again.

Satellites in low-Earth orbit have a shelf life.

So you need to have a capability to kind of continually launch satellites.

All together, this makes the barrier to entry quite high.

McKinsey estimates the cost to launch an operable constellation is between $5 to $10 billion, with yearly operating costs running another $1 to $2 billion.

The marketplace that SpaceX has always been after is global.

SpaceX said in April that Starlink was available in more than 50 countries.

And within the next few years, it expects to operate in many more countries across Africa and Asia.

SpaceX has been going around the world to get permission from national regulators to sell Starlink connections.

Cooperation in space is a key part of China's Belt and Road Initiative, a global infrastructure project.

Last year, China said it had formed 149 space cooperation agreements with 46 national space agencies.

And already it's provided countries across Africa, Europe, and Asia with Beidou, a global navigation satellite system that rivals US-owned GPS.

Major Chinese companies built infrastructure across the world too.

Up to 70% of 4G network infrastructure across Africa was built by Huawei.

There are, you know, billions of people around the world that don't have any Internet at all.

Beyond that, there's a huge demand just generally for high-speed internet.

And that demand is part of what's driving Starlink, China and companies everywhere to build these LEO constellations.

Satellite internet, at least right now, faces like real cost challenges relative to traditional on the ground terrestrial infrastructure for internet connections.

I don't think that like low earth orbit satellites will take over and provide like global high speed internet capacity.

1 of the biggest concerns facing the sector's expansion is overcrowding in low-Earth orbit.

Officials estimate there will be 58, 000 satellites, about a 725% increase from the number in the sky right now.

In just the past 2 years, the FCC received applications for more than 64, 000 satellites.

And experts at NASA and the FCC fear that more satellites could mean more issues.

Already, There are over 26, 000 pieces of debris, at least the size of a softball, in low-Earth orbit that could destroy a satellite on impact.

If you assume that like tens of thousands of additional satellites are launched and deployed to low-Earth orbit in the coming years, There's going to be a real need for coordination, communication, finding ways for all these operators to sort of know where their devices are located, how they're moving, and what the potential threat is for a collision.

Low Earth orbit, it's sort of like a commons right now.

There are some treaties that govern space and there are also what experts and government officials call norms around good space behavior.

It's a little more open-ended and dependent on actors there to sort of work together and communicate.


Speaker 0: 362 million people don't have internet access in China. That's roughly 30 million more people than the entire U.S. Population. But this rocket holds a possible solution to help China close the gap. Inside it are low-Earth orbit satellites capable of providing high-speed internet access even in remote areas.

In China, this technology is still experimental. But Starlink, a subdivision of the American company SpaceX, has already launched 4, 768 of them, making it the leader across the globe. Although space is vast, these satellites operate in a specific area that's quickly getting more crowded. To ensure its place, China is building up its capabilities. Just 2 decades ago, 59.1 million people in China were online, just 4.6% of its population then.

Now it's over 1 billion people, 74% of the population. So is the country known for its rapid development, capable of rivaling Starlink? Of the roughly 8, 000 functioning satellites currently in orbit, about 55% belong to Starlink. And the position of its satellites is key. For decades, satellite internet providers relied on geostationary satellites.

These satellites are far away, about 22, 000 miles above the Earth's surface. That distance lets them cover a large area and reach remote parts of the globe. But it takes longer for data to travel between the satellite and the user. This means the broadband has high latency and slower speeds. Often, geostationary satellites offer speeds at least 25 megabits per second, which is enough to stream in HD and can support about 1 to 3 devices.

But satellites in low-Earth orbit, or LEO, are much closer, no more than 1, 200 miles from Earth's surface. This means that while a LEO satellite can't cover as much area as a geostationary satellite, it can provide more stable and faster internet speeds. Though SpaceX got its start launching rockets, it has built up a big business selling broadband powered by LEO satellites. And a key to its success? It owns every step of the process.

SpaceX manufactures the satellites and launches them with its own Falcon 9 rockets. And Falcon 9 boosters, the part that blasts the rocket off the ground, are reusable, saving SpaceX money on launch costs.

Speaker 1: They have a very capable launch division that is regularly blasting satellites off for customers, for governments, and for itself.

Speaker 0: And it can launch dozens of satellites into low-Earth orbit per trip. In 2014, China opened its space sector up to private investment. 5 years later, startups in China received over $314 million in funding. The only country that attracted more startup funding was the U.S. In the same year, SpaceX alone received $962 million.

To be more self-sufficient, China has been investing in key tech like Leo Satellites. In 2021, it established SatNet, a state-owned company it hopes will streamline the process to launch satellites and form a broadband network. So far, China says it will build at least 7, 800 satellites. Plus, the China Aerospace Science and Technology Corporation and the China Aerospace Science and Industry Corporation have each launched experimental satellites into low-Earth orbit. And startup GalaxySpace launched several operational satellites last year to begin its 1, 000-satellite constellation.

But so far, no enterprise in China has created a rocket to launch these satellites that's as advanced as the Falcon 9. However, Beijing Tianbing Technology appears to be getting closer. While the company doesn't have a reusable rocket yet, it sent a liquid fuel rocket into orbit for the first time earlier this year. Experts say this is a crucial step to creating a reusable rocket. Ultimately, the company wants to develop rockets that can deploy up to 60 satellites in a single launch, similar to Falcon 9's capabilities.

Speaker 1: It's not easy to get off of Earth and deploy hundreds or thousands or tens of thousands of satellites into that part of space. You need a rocket that can make those trips over and over and over again. Satellites in low-Earth orbit have a shelf life. They have to be replaced. So you need to have a capability to kind of continually launch satellites.

Speaker 0: All together, this makes the barrier to entry quite high. McKinsey estimates the cost to launch an operable constellation is between $5 to $10 billion, with yearly operating costs running another $1 to $2 billion. So what's the benefit?

Speaker 1: The marketplace that SpaceX has always been after is global.

Speaker 0: SpaceX said in April that Starlink was available in more than 50 countries. And within the next few years, it expects to operate in many more countries across Africa and Asia.

Speaker 1: SpaceX has been going around the world to get permission from national regulators to sell Starlink connections.

Speaker 0: But it's not alone. Cooperation in space is a key part of China's Belt and Road Initiative, a global infrastructure project. Last year, China said it had formed 149 space cooperation agreements with 46 national space agencies. And already it's provided countries across Africa, Europe, and Asia with Beidou, a global navigation satellite system that rivals US-owned GPS. Major Chinese companies built infrastructure across the world too.

Up to 70% of 4G network infrastructure across Africa was built by Huawei.

Speaker 1: There are, you know, billions of people around the world that don't have any Internet at all. Beyond that, there's a huge demand just generally for high-speed internet.

Speaker 0: And that demand is part of what's driving Starlink, China and companies everywhere to build these LEO constellations. But...

Speaker 1: Satellite internet, at least right now, faces like real cost challenges relative to traditional on the ground terrestrial infrastructure for internet connections. I don't think that like low earth orbit satellites will take over and provide like global high speed internet capacity.

Speaker 0: 1 of the biggest concerns facing the sector's expansion is overcrowding in low-Earth orbit. By 2030, U.S. Officials estimate there will be 58, 000 satellites, about a 725% increase from the number in the sky right now. In just the past 2 years, the FCC received applications for more than 64, 000 satellites. And experts at NASA and the FCC fear that more satellites could mean more issues.

Already, There are over 26, 000 pieces of debris, at least the size of a softball, in low-Earth orbit that could destroy a satellite on impact.

Speaker 1: If you assume that like tens of thousands of additional satellites are launched and deployed to low-Earth orbit in the coming years, There's going to be a real need for coordination, communication, finding ways for all these operators to sort of know where their devices are located, how they're moving, and what the potential threat is for a collision. Low Earth orbit, it's sort of like a commons right now. There are some treaties that govern space and there are also what experts and government officials call norms around good space behavior. It's a little more open-ended and dependent on actors there to sort of work together and communicate.

Speaker 0: You

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China, Elon Musk and the Space Race to Launch Thousands of Satellites | WSJ U.S. vs. China