The LEO satellite sector keeps moving at a fast pace. If you want the latest market outlook, you can download our Insight Note below. I wanted to add a bit more context here, especially since a new development for SpaceX emerged after we released the Note. SpaceX just received FCC authorization to scale its Gen2 constellation with thousands of additional satellites. I also wanted to draw a contrast with the proposed direct-to-cell (DTC) Starlink constellation that the FCC is still reviewing.
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SpaceX Pushes Gen2 Growth
In its January 9, 2026 decision, the FCC will authorize SpaceX to deploy 7,500 additional Gen2 Starlink satellites, which brings the constellation to 15,000 satellites. The FCC will hold off on authorizing the remaining 14,988 proposed Gen2 satellites. The authorization lets SpaceX deploy Gen2 satellites at altitudes between 340 and 485 km and continue operating at 525 – 535 km. SpaceX continues to lower its operating altitudes, which matches the trend we describe in the Note for other constellations.
The authorization also permits SpaceX to operate SCS services in the U.S. with aggregate out of band emissions (OOBE) at a power flux density (PFD) level up to -110.6 dBW/m2/MHz. There are other spectrum related provisions that I will not list here. What matters is that this authorization applies to an earlier application that SpaceX filed before it acquired EchoStar’s MSS/AWS-4, H-block, and AWS-3 spectrum. The FCC is now consulting on SpaceX’s Gen3 application, which will use that newly acquired spectrum.
Pushback Against Starlink Gen3
As we outlined in the Note, SpaceX filed last year for authorization to deploy a 15,000 satellite Gen3 constellation that supports MSS and SCS services. The FCC is running an active consultation, and several major satellite operators already filed their comments ahead of the January 22 deadline. I will not repeat the full technical details of the Gen3 proposal, since the Note covers them, but I can summarize the main objections.
Stakeholder filings show a very targeted opposition. Most objections focus on specific spectrum bands and interference risks. Globalstar and Iridium strongly oppose SpaceX’s proposed use of Big LEO frequencies. They argue that they hold exclusive licensing rights and that SpaceX’s plan threatens harmful interference to their user links. Ligado and Viasat raise similar concerns in the L band, pointing to violations of international coordination agreements such as the Mexico City MoU and the risk of disrupting their North American services.
Geostationary operators, including Eutelsat and SES, add another layer of concern. They focus on SpaceX’s request for partial waivers of the PFD framework and argue that these waivers would weaken long standing interference protections and reduce regulatory predictability without enough justification.
Kepler Prepares its Launch
Kepler is about to launch 10 of its 300 kg satellites to deliver data backhaul in space over optical inter-satellite links (OISLs). This is an interesting area for the use of free space optics, which I wrote about earlier. Each satellite carries 4 optical terminals for laser links between space, air and ground, along with in space data processing capability. This setup should appeal to Earth observation satellite operators and government users. I would also note that SpaceX currently leads OISL deployment with more than 23,000 units.
Concluding Thoughts
The push for sovereign LEO systems is becoming one of the most important dynamics in the market. Governments want secure, independent space infrastructure, and that demand now shapes how operators position their constellations and spectrum strategies. SpaceX continues to scale, but countries and regional blocs explore their own paths, from national broadband systems to secure connectivity and defense driven architectures. These moves signal a shift toward strategic autonomy in space, where resilience, control and trusted supply chains matter as much as raw capacity.