February 5, 2026
Finance

FCC Seeks Input from SpaceX on Ambitious Mega-Satellite Network Proposal

Agency reviews Elon Musk's plan for up to one million orbital data centers with advanced intersatellite links

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Summary

The Federal Communications Commission has formally invited SpaceX to comment on its proposal to deploy a vast constellation of up to one million non-geostationary satellites designed to function as orbital data centers. The plan includes innovative optical intersatellite communications and integration with existing Starlink systems, marking a significant leap towards futuristic space infrastructure. SpaceX also requests multiple regulatory waivers to enable flexible deployment and operation schedules for this expansive satellite network.

Key Points

SpaceX has submitted an application to the FCC to operate a non-geostationary satellite system comprising up to one million satellites orbiting between 500 and 2,000 kilometers.
The planned network would heavily utilize optical intersatellite-links to facilitate communication between satellites, with interoperability with existing Starlink constellations.
SpaceX is requesting several regulatory waivers from the FCC concerning application processing timelines, launch and operational milestone requirements, surety bonding, and certain technical filing mandates to gain deployment flexibility.
The merger of SpaceX and AI company xAI creates a combined entity valued at approximately $1.25 trillion, highlighting growing integrations between space and AI sectors.

The Federal Communications Commission (FCC) has stepped forward to engage with SpaceX regarding the company's latest submission detailing an ambitious satellite system plan. The proposal, which SpaceX filed for a non-geostationary satellite orbit (NGSO) system, would see the deployment of as many as one million satellites positioned between 500 and 2,000 kilometers above Earth's surface.

In a recent statement posted on the social media platform X, FCC Chair Brendan Carr highlighted the innovative potential of the proposed project, describing it as a "first step towards becoming a Kardashev II-level civilization." This reference underscores the scale and transformative ambition of the system envisioned by SpaceX.

The public notice shared by the FCC outlines the technical and operational framework SpaceX has proposed. Central to the system is the use of optical intersatellite-links (OISLs), which allow high-speed, laser-based communication between satellites. These connections are planned to enable network-wide data relay, interlinking the satellites within the proposed massive constellation.

Furthermore, SpaceX intends for the new system to integrate with its existing Starlink broadband satellite networks, including the first and second generation constellations. This incorporation suggests a comprehensive, multi-tiered satellite infrastructure aimed at dramatically increasing both capacity and service capabilities in orbit.

Regulatory Waiver Requests

Beyond the technical parameters, SpaceX has requested several regulatory waivers that pertain to established FCC rules governing satellite operations. Among these are waivers to sections 25.156(d) and 25.157 of the Commission's rules, which generally dictate the timelines for application processing and the sequencing of processing rounds. Approval of such waivers would provide SpaceX the ability to submit and have its application reviewed outside of fixed temporal frameworks.

Additionally, the company seeks relief from Section 25.164, which sets requirements for satellite launch schedules and operational milestones. Normally, failure to meet these benchmarks can lead to license revocation. The waiver would allow for extended flexibility in deployment timelines, a notable consideration given the scale of the proposed system.

SpaceX also petitioned to waive Section 25.165, which mandates posting a substantial surety bond ensuring compliance with licensing conditions. This requirement typically acts as a financial safeguard against abandonment or failure to meet obligations. Alongside this, the company requests modifications to conditions related to Section 25.114(a)(1), more specifically concerning the submission of Schedule S, a form collecting detailed technical and operational information about orbited space stations.

In its filing, SpaceX specifies that it seeks these waivers only to the extent necessary and explicitly references aspects such as channel plans for licensed beams, uplink/downlink beams, command beams, and orbital plane configurations. This selective waiver request suggests an intention to maintain regulatory compliance where feasible, while adapting requirements that could impede deployment of their large and technologically advanced satellite constellation.

SpaceX-xAI Corporate Integration

This regulatory development comes amid recent corporate restructuring involving SpaceX and Elon Musk's artificial intelligence enterprise, xAI. The two companies have merged, resulting in a combined valuation surpassing $1.25 trillion. SpaceX accounts for roughly $1 trillion of this figure, with xAI valued around $250 billion.

The merger has generated discourse within investor circles regarding its implications for related ventures, including speculation about a potential merger between Tesla Inc. and SpaceX. However, notable investors such as Gary Black from the Future Fund LLC have expressed skepticism about whether such a move would indeed deliver benefits for Tesla's shareholders.

Implications and Future Considerations

The FCC's public notice and call for comments signal the agency's intent to thoroughly assess the viability and regulatory compliance of this unprecedented satellite endeavor. The integration of optical communication technology, vast satellite quantities, and interconnectivity with existing networks positions SpaceX's plan as a significant technological milestone in orbital infrastructure.

Nonetheless, the company's request for multiple regulatory waivers reflects the complexities and challenges inherent in realizing a project of this magnitude within existing legal frameworks. Stakeholders and observers will be watching closely as the FCC evaluates the application and assesses potential impacts on spectrum management, orbital congestion, and space traffic coordination.

In the coming months, further details may emerge as SpaceX provides responses to the FCC's requests and potentially advances this vision toward operational reality. For now, the project remains under study, embodying an ambitious step forward in the expansion and capabilities of satellite-based infrastructure in Earth orbit.

Risks
  • SpaceX's request for waivers from established FCC operational and processing rules indicates potential regulatory hurdles and uncertainties in meeting standard licensing conditions.
  • The unprecedented scale of deploying up to one million satellites raises concerns around orbital management, congestion, and spectrum coordination.
  • Failure to meet deployment milestones could jeopardize licensing if waivers are not granted or conditions are modified accordingly.
  • Integration of a new satellite system with existing Starlink networks introduces technical and operational complexities that have yet to be fully evaluated in regulatory proceedings.
Disclosure
Education only / not financial advice
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