Low Earth Orbit Satellites: Policies to Promote Spectrum Sharing, Foster Competition, and Close Digital Divides

Recent advances in technology have dramatically expanded the potential for Low Earth Orbit (LEO) satellites to meet global connectivity needs. Satellites in orbit have grown tenfold over the past decade. LEO systems can now deliver faster speeds and lower latency than previous generations, enabling services ranging from broadband internet and remote backhaul to sensing networks and enterprise Internet of Things. This report by the LEO Policy Working Group highlights three salient LEO issues for policymakers to address. First, effective spectrum sharing and coexistence reforms can hugely expand LEO capacity, performance, and innovation. The report endorses a new U.S.-led framework for satellite spectrum sharing, higher power, and a dramatic increase in allocations for both fixed and mobile satellite use. Second, the report finds that competition is real and intensifying but also skewed by state sponsorship and regulatory asymmetries. Policymakers must remain alert to how vertical integration, tying, and merger activity shape the market over time. Third, LEO systems are advancing the goal of universal connectivity, but traditional government subsidy programs need to be adjusted to better incorporate them. Policymakers must consider LEO service’s strengths, challenges, and use cases to effectively include LEO systems in ongoing and future broadband subsidy programs.