Sky High Stakes: How Private Megaconstellations Are Reshaping Global Power

Sky High Stakes: How Private Megaconstellations Are Reshaping Global Power
(Credit: X/@blueorigin)

Rachel Tay, MA Middle Eastern Studies

Slowly but surely, the skies above us are becoming the new frontier of contestation for digital infrastructure. Jeff Bezos’ astronautics company, Blue Origin, recently announced plans to build a 5,400-strong satellite megaconstellation called TeraWave, the latest to join the burgeoning ecosystem of satellite-internet infrastructure in space run by private firms. 

TeraWave is slated for launch into both Low Earth Orbit (LEO) and Medium Earth Orbit (MEO), and the multi-orbit architectural design is expected to deliver high-throughput communications between global hubs and multigigabit user connections. 

Presently, SpaceX’s Starlink dominates LEO with more than 9,500 satellites that primarily serve consumer and commercial broadband, competing with Bezos-owned Amazon’s Leo (formerly Project Kuiper). TeraWave is meant to complement Leo’s market coverage by tailoring services to the needs of large businesses and government agencies. The Eutelsat OneWeb network comprises more than 600 active satellites that occupy the sweet spot between consumer broadband and high-throughput systems. Two Chinese megaconstellations– Guowang (National Network) and Qianfan (Thousand Sails) – are also underway, with more than 13,000 spacecraft expected to populate LEO. 

As far as current space law stretches, the haul from space ventures should, in theory, benefit the global commons. Yet, the lag in governance over areas such as access, accountability, and environmental safety creates space for ‘first movers’ and the incredible advantages they benefit, while leaving the rest of the world to bear their costs. 

Unlike consumer-facing satellite broadband, ‘backbone’ systems like TeraWave are not designed to connect individuals, but to interlink large-scale networks behind the scenes. Essentially, it functions much like space-based equivalents of undersea fibre-optic cables carrying bulk data traffic. Because they largely operate out of sight, ‘backbone’ systems may quietly structure future global data flows to privilege certain cloud providers or geopolitical blocs – all before enforceable accountability and governance frameworks are established. 

Beyond market competition, such systems do trigger political concern. When connectivity is owned and run by private firms headquartered in a handful of states, access to critical digital infrastructure becomes contingent on foreign corporate governance, domestic regulations, and geopolitical alignment. A case in point is the Starlink controversy back in September 2022. US-based SpaceX’s CEO, Elon Musk, reportedly ordered a shutdown of at least a hundred satellite terminals, plunging Ukrainian troops into a communication frenzy. Drones surveilling Russian forces went dark, while long-range artillery units dependent on Starlink for geopositioning failed to hit targets. When at the mercy of unilateral corporate decision-making, civilian connectivity infrastructure can be leveraged to sway geopolitical outcomes in favour of certain regimes. 

Having thousands of satellites in orbit without proper waste management regulations is also a ticking environmental time bomb. In February 2022, some 40 Starlink satellites malfunctioned after a geomagnetic storm, causing them to fall out of orbit and back into Earth’s atmosphere earlier than expected. Defunct satellites that are unremoved increase the probability of Kessler Syndrome — cascading collisions that produce high-velocity fragments exponentially. This prompts a greater incidence of uncontrolled debris re-entry into Earth, a phenomenon where burned-up waste can fall at any time and place. Though the danger to humans is statistically low, it spikes as more satellites are deployed without mechanisms to hold operators accountable.

Even while satellite megaconstellations offer undeniable conveniences across society’s spectrum, most of the economic and resource windfall is quietly concentrating in the hands of private firms without international oversight. Ultimately, governance that cannot keep pace with corporate activity remains the Achilles’ heel of the space race, risking the export of existing terrestrial inequalities into the realm of the stars.