- The FCC authorized Starlink to deploy more satellites at a lower altitude
- The move will boost capacity but could result in more satellite replacements and interference issues, said analysts
- Starlink’s expansion will make it tougher for other LEO players – like Amazon and AST – to compete
SpaceX’s Starlink is gearing up to deploy another 7,500 satellites thanks to the Federal Communications Commission (FCC) authorization. But the move is less about expanding coverage than it is about improving latency and network reliability, analysts told Fierce.
Per the FCC’s announcement, SpaceX will be allowed to operate across the Ku-, Ka-, V-, E- and W-band frequencies, supporting both fixed satellite service (FSS) and mobile satellite service (MSS). The company also got the green light to operate its low-earth orbit (LEO) satellites at lower altitudes, ranging from 340-485 kilometers.
The latter is notable as Starlink has about 9,400 satellites currently in orbit, roughly half of which operate at an altitude of 550 kilometers.
Arun Menon, lead analyst at MTN Consulting, said, “Starlink already has near-global reach. These lower and additional shells enable greater frequency reuse, better link budgets, and lower latency, which together translate into higher usable throughput, particularly in high-demand or congested regions.”
Starlink has been strained by lack of bandwidth capacity, particularly in densely populated areas. Nevertheless, the service continues to grow, with Starlink’s annual report noting it added 4.6 million customers in 2025 (to a total of over 9 million) and expanded service to 35 additional countries, territories and other markets.
Potential downsides
Operating at lower altitudes does come with some technical trade-offs, Menon continued. Satellites at those levels experience higher atmospheric drag (i.e., air resistance), which can shorten operational lifetime and result in more frequent replacements.
“Managing a denser, multi-shell constellation also adds complexity in terms of handovers, collision avoidance, and interference management,” said Menon.
Mobile Experts Principal Joe Madden noted lower altitude, despite improving the capacity and latency of the overall system, could put a slight damper on coverage.
“When the satellite is flying lower, it can cover less of the Earth’s surface,” he explained. “So the coverage of each Starlink satellite will be reduced by 20% or so due to the lower altitude.”
He said Starlink will be able to offset that drawback by deploying more satellites. “That way, whenever a satellite passes by a user, a second satellite will always be coming up.”
That being said, Starlink plans more deployments in an “already crowded” LEO landscape, said Jessica Dine, policy analyst at New America’s Open Technology Institute and Wireless Future.
“Orbital debris, collisions and spectrum interference concerns become more likely as more satellites launch,” she said. “Although SpaceX is required to operate on a non-harmful interference basis and coordination is generally required among users within bands.”
Step up for Starlink’s competitive edge
Challenges aside, analysts agree the FCC’s authorization will make it significantly tougher for other LEO operators to compete.
“The more satellites Starlink has the tougher it gets for the rest,” commented Recon Analytics Principal Roger Entner.
Particularly for Amazon Leo, which only has about 180 production satellites in operation and still hasn’t launched a commercial broadband service. AST SpaceMobile is also “significantly behind” Starlink on the direct-to-device front, Entner noted in a recent satellite research report.
AT&T and Verizon are both working with AST as their answer to T-Mobile and Starlink’s partnership. The FCC also gave Starlink the go-ahead to provide direct-to-cell connectivity outside the U.S. “and supplemental coverage within the U.S.,” so we’ll likely see Starlink step up its D2D ambitions.
For other LEO players, “the competitive focus is shifting from simply deploying a constellation to being able to densify it efficiently and sustain performance at scale,” Menon said.
“Starlink’s expansion reinforces its position not just as a broadband provider, but as a global access infrastructure platform, making it increasingly difficult for late entrants or smaller LEO operators to compete on capacity, economics, and execution speed,” he concluded.