Launch delays and low consumer uptake create a contrasting picture against optimistic satellite comms market speculation in 2026.
In 2025, EchoStar sold its spectrum to SpaceX due to its inability to pay the interest on its debts. The cause of the debts seems to be a lack of consumer interest in space-based MNO services.
Reasons for a lack of consumer interest may stem from:
- Expensive subscription costs.
- A perception that satellite communication is for emergencies and hard-to-reach, rural areas.
- Improving coverage and faster speeds of traditional communications infrastructure.
Market Research Intellect reveals that consumer growth is still primarily centred on hard-to-reach rural areas. There are typically fewer people in rural areas, and they might not be able to afford the rates, slowing adoption.
Nevertheless, competition is heating up. The EU is providing €10bn of funding to launch IRIS2, an alternative to Starlink. SpaceX could go public in 2026, boosting public interest. Furthermore, despite recent delays, more companies are seeking launch dates.
However, until customers are convinced that satellite communication is reliable, fast and cost effective, businesses face an uphill battle.
