The business structure of the Low-Earth orbit

The development of a low-Earth orbit satellite constellation requires rigorous efforts and advanced technology. Many procedures go into the development process ranging from the legal aspects to the technological operations. A technical example is Elon Musk’s SpaceX, which decided to develop the Starlink satellite constellation. He announced that they would be developing new offices in Seattle to facilitate data routing through satellites.

The problem that emerged with this project was that there would be a need for inter-satellite links, which the Starlink constellation is yet to develop. Therefore, he explained the batch of satellites that they would be launching in the next five years would have them to meet this need.

Another problem that the renowned chief executive has managed to resolve is the strains between testing prototypes and launching the real mission. He decided to do less but comprehensive tests rather than unfinished tests that leave the engineers disintegrated. He chose to use the real launches as tests provided the review committees have agreed to them after witnessing the successful test trials.

This type of launch is similar to how app developers create an app and continue to make adjustments along the way. Elon Musk has tried to emulate this strategy to ensure that the project proceeds instead of waiting to make a definite design that will require no changes. He discovered that there will always be room for improvements, a concept that allows them to develop their payloads and test them through actual launches before making the necessary changes when the time comes.

Furthermore, companies resolve capital problems by making early fundraisers after the first launch mission. The enthusiasm that customers have for this product stirs them to buy it, and in the process, the company raises its operating capital. Additionally, the company can utilize this strategy to attract more investors into the business. Similarly, space companies and satellite operators can utilize this strategy to boost their capital.

Another good advantage that space companies can emulate is Viasat. Viasat is known for being a geostationary orbit satellite operator. Nevertheless, the company articulated that it would be developing a low-Earth orbit satellite constellation. Industry experts would argue that this move is risky, but the company can generate capital to run its operations. Investors would love to cash into the company after it has displayed success while operating as a GEO satellite developer. To sum up, the satellite operator declaring such outrageous moves must have proven their efficiency before deciding. Every company ought to evaluate its weaknesses and emulate other companies in their capacity and maneuvered out of the problem.

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