The global low Earth orbit (LEO) satellite industry has seen two major developments. On one hand, Amazon, Iridium, Telesat, and Globalstar have jointly established SpaceConnect, a new industry association aimed at advancing policy reforms for the non-geostationary orbit (NGSO) satellite sector. On the other hand, Rocket Lab has announced an US$8 billion acquisition of Iridium, strengthening its vertically integrated capabilities across satellite manufacturing, launch services, and satellite operations. Together, these developments underscore the accelerating consolidation and intensifying competition within the global satellite communications industry.
SpaceConnect Launches to Advance NGSO Satellite Policy Initiatives
SpaceConnect was founded by Amazon, Iridium, Telesat, and Globalstar to represent the interests of the NGSO satellite industry and advocate for regulatory and policy reforms. The organization is led by David Redl, former Administrator of the U.S. National Telecommunications and Information Administration (NTIA), who serves as Chief Executive Officer, while Julie Kearney, the inaugural Chief of the FCC's Space Bureau, has been appointed General Counsel.
The organization plans to focus on a broad range of policy issues, including spectrum management, satellite licensing and regulatory modernization, government procurement of commercial satellite services, and efforts to encourage the International Telecommunication Union (ITU) to review and update Equivalent Power Flux Density (EPFD) regulations in response to the rapid expansion of NGSO satellite constellations.
Notably, SpaceX and AST SpaceMobile—two major players in the rapidly growing Direct-to-Device (D2D) satellite communications market—are not members of the alliance. Industry analysts attribute their absence to longstanding disagreements over spectrum allocation, orbital resource management, and competitive market strategies. For example, SpaceX has previously opposed regulatory filings related to Amazon Leo, while Iridium and AST SpaceMobile have maintained ongoing disputes over spectrum usage.
In addition, SpaceX has already established a strong competitive position through favorable regulatory momentum at the U.S. Federal Communications Commission (FCC) and its expanding global market presence, reducing the need to participate in an industry coalition. Market observers also speculate that SpaceConnect may eventually collaborate with major mobile network operators—including T-Mobile, AT&T, and Verizon—to advocate for regulatory frameworks that promote D2D satellite services and foster greater market competition.
Rocket Lab to Acquire Iridium for US$8 Billion, Accelerating Vertical Integration
In a separate landmark transaction, Rocket Lab announced that it will acquire Iridium for approximately US$8 billion through a combination of cash and stock. The transaction has been unanimously approved by the boards of both companies and is expected to close in mid-2027, subject to customary regulatory approvals.
The acquisition comes amid a broader wave of consolidation across the satellite industry, following major developments such as Amazon's acquisition of Globalstar and SpaceX's landmark IPO, highlighting increasingly intense competition among global satellite operators.
Iridium currently operates a constellation of 80 LEO satellites utilizing L-band spectrum to provide worldwide communications services. The company supports more than 500 partners and 2.55 million active subscribers, with business operations spanning satellite Internet of Things (IoT), Direct-to-Device (D2D) communications, Positioning, Navigation, and Timing (PNT) services, and mission-critical communications.
In recent years, Iridium has been actively advancing its NTN Direct platform and has successfully demonstrated two-way messaging capabilities. The company aims to establish the world's first 3GPP-compliant NB-IoT and D2D satellite service, providing global coverage while lowering both technical and commercial barriers for device manufacturers and ecosystem partners deploying satellite IoT applications.
Rocket Lab Chief Executive Officer Peter Beck stated that combining Iridium's established satellite infrastructure, global spectrum assets, and commercial customer base with Rocket Lab's satellite manufacturing and launch capabilities will create a fully integrated aerospace company capable of competing more effectively with vertically integrated rivals such as SpaceX/Starlink and Amazon/Globalstar.
Iridium Chief Executive Officer Matt Desch added that as satellite networks continue to converge with terrestrial mobile communications, the combined company will be well positioned to accelerate innovation across IoT, aviation, maritime, PNT, and national security applications, while expanding commercial opportunities for next-generation Non-Terrestrial Networks (NTN).