USAF Invests in Two Billion-Dollar Satellites from Boeing, Leaving SpaceX and Starlink in the Dust

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Key Highlights in Satellite Developments

Amazon is launching over 3,000 small “Amazon Leo” satellites aimed at providing broadband internet from low Earth orbit, while its sister company Blue Origin plans to deploy a constellation of 5,400 satellites for communication services targeting enterprise and government clients. In contrast, SpaceX’s Starlink dominates the market with approximately 10,800 satellites currently in orbit.

On January 3, 2023, the U.S. Air Force awarded Boeing a $2 billion contract to produce two large Mobile User Objective System (MUOS) satellites, expected to maintain communications capability through 2035. This decision contrasts with the growing trend toward smaller satellite constellations, with firms like Rocket Lab and Planet Labs offering smaller solutions that typically cost millions, compared to the $1 billion per satellite price tag set by Boeing for the MUOS project.

Historically, large satellites have been viewed as secure due to their limited number. However, the military’s commitment to MUOS indicates a possible continuing reliance on larger satellites despite a shift in the industry towards smaller alternatives, driven by advancements in technology and decreases in launch costs.

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