The FCC’s revised rules will reward first movers for taking a risk, while a change of leadership of the regulator could lead to further support for certain satellite providers
The FCC has revised its satellite spectrum sharing rules
On 15 November 2024, in the US, the Federal Communications Commission (FCC) announced a revision of its satellite spectrum sharing rules. The revision aims to provide clarity regarding the sharing of spectrum between non-geostationary satellite orbit, fixed-satellite service (NGSO FSS) systems that were licensed at different times. The updated rules grant primary spectrum access to systems that were approved earlier, while seeking to allow new entrants to participate in an “established and cooperative spectrum sharing structure”. Jessica Rosenworcel (Chair, FCC) explained that the update gives first movers an advantage they have earned by “daring to think big and take on risk while also opening our skies to more competition”.
Satellite providers have weighed in on the new rules
The FCC has introduced a 3% time-weighted average throughput degradation as a long-term interference protection measure that operators must follow. This requires that operators must only allow for, on average, up to a 3% decline in their throughput (i.e. the rate at which data is transferred over a network connection) caused by interference from the entry of new operators. The FCC believes this 3% limit will provide protection to systems that were licensed earlier from long-term interference. The majority of satellite providers, including SpaceX, Kuiper and Telesat, supported the FCC’s decision; however, OneWeb did not, proposing a limit of no more than 10% average throughput degradation. OneWeb argued that a 3% threshold would harm providers and disincentivise coordination among them, adding that SpaceX support for a 3% threshold relies on flawed assumptions. The regulator also adopted a 0.4% absolute increase in link unavailability as a short-term interference metric. This 0.4% figure was proposed by SpaceX following their study on several systems licensed in 2016 and 2020. While Kuiper supported SpaceX’s recommendation, OneWeb and O3b argued that the proposal would disincentivise coordination and undermine service quality. O3b instead suggested the FCC adopt the use of a formula, rather than a fixed percentage value. Ultimately though, the regulator has adopted SpaceX’s proposed 0.4% metric. The potential for interference in terrestrial networks and adjacent spectrum services as a result of the introduction of direct-to-device satellite services has been a concern for other regulators too, with Ofcom recently recognising these in their recent publication on improving satellite connectivity.
SpaceX has been at odds with the FCC and its competitors regarding radio emissions from satellites
As of late, SpaceX has called on the FCC to loosen its rules on satellite radio emissions. In September 2024, the company warned the FCC that without a relaxation of these rules, its cellular Starlink system would be unable to provide consumers with real-time calling in both critical and common situations, increasing risk in emergencies. SpaceX’s technology promises better cellular connectivity in so-called dead zones, although Starlink satellites (if granted the permission to operate beyond radio emission limits) may risk generating radio interference. Some of SpaceX’s main competitors in the field, Verizon and AT&T, argue that Starlink technology will cause these problems. SpaceX has responded to Verizon and AT&T, arguing that they are obstructing SpaceX’s progress. Elon Musk (CEO, SpaceX) also participated in his company’s pleas to the FCC, posting on X about the benefits of Starlink to end users, such as offering free emergency service to all phones.
Will SpaceX be granted more leeway by the FCC under President-elect Trump’s incoming administration?
With President Donald Trump set to be inaugurated in January 2025, the FCC as well as the National Telecommunications and Information Administration (NTIA) may look to make a number of changes to tech and telecoms regulation rolled out during the Biden Administration, such as net neutrality rules and qualifications for the Broadband Equity Access and Deployment (BEAD) Program. Incoming Republican leaders, including likely Senate Commerce Committee Chair Senator Ted Cruz and President Trump’s proposed FCC Chair Brendan Carr, are also likely to pursue a more friendly regulatory environment for SpaceX and its Starlink satellite systems. While Musk has been selected to lead a Department of Government Efficiency in the incoming President’s administration, Carr is likely to grant SpaceX the ability to operate its satellites with more freedom and less regulatory oversight. Carr has already been vocal in his support of Musk and SpaceX, replying in support to Musk’s post on X to urge the FCC to grant SpaceX’s request to go beyond radio emission limits. Senator Cruz has also recently voiced concerns over the preferencing of fibre-based projects seeking BEAD funding and could urge the NTIA to reprioritise satellite as well as FWA projects.
