Globalstar asked the FCC to take a close look at how its relationship with supplier Rocket Lab could be impacted after Rocket Lab acquires Globalstar competitor Iridium.
Globalstar submitted an FCC filing in the agency’s review of the Rocket Lab/Iridium acquisition, detailing what it called repeated attempts by Iridium to “capture” its licensed mobile satellite service (MSS) spectrum through regulatory filings, and raising questions about the competitive implications of the deal.
Rocket Lab is a supplier to Globalstar; it built the satellite buses as a subcontractor to MDA Space for Globalstar’s satellite network refresh. Globalstar noted that Rocket lab also supplies Globalstar’s flight and ground software for these satellites, and developed Globalstar’s satellite operations control center.
Globalstar questioned the implications of Rocket Lab acquiring Iridium, a direct competitor to Globalstar.
“These arrangements will provide Rocket Lab with ongoing influence over the timing and performance of a future rival’s constellation and access to that rival’s spacecraft architecture, engineering requirements, operations workflows, and delivery schedules,” Globalstar stated. “Today, Rocket Lab’s interests align with Globalstar’s success; after it acquires Iridium, however, that same supplier relationship will give Rocket Lab both the incentive and the means to advantage Iridium at a competitor’s expense.”
Globalstar is set to be acquired by Amazon, and the FCC just approved that transaction last week. Amazon intends to enter the direct-to-device market with this acquisition and operate Globalstar as a subsidiary, retaining its corporate identity.
Globalstar and Iridium have exclusive operating rights in a portion of MSS spectrum referred to as the “Big LEO” band. The FCC affirmed these rights earlier this year, rejecting a request from Iridium to revise the band.
After both acquisitions go through, Rocket Lab/Iridium and Amazon/Globalstar are set to compete in MSS services and the D2D market.
Globalstar stated it does not oppose the acquisition, but called for the FCC to examine Iridium’s past regulatory conduct, and “scrutinize the transaction-specific incentives created by Rocket Lab’s existing role as a supplier to Globalstar.”
Rocket Lab has not responded directly to Globalstar’s new filing, but addressed competitive concerns in a recent filing about the acquisition, also posted Nov. 2. Rocket Lab stated the acquisition will not cause “harm to competition or the public interest.”
“Because Rocket Lab holds no MSS spectrum and has no near-term ability to enter the market for Big LEO MSS services, the transaction will not increase concentration or reduce competition in any market,” Rocket Lab stated.
