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Brazil, in partnership with China, is preparing a turnaround in the satellite internet market. With SpaceSail in the country, Elon Musk's dominance may be numbered.
Enquanto or global satellite internet market is growing rapidly, a recent move between Brazil and China could cause a significant shake-up in the leadership of Starlink, billionaire Elon Musk's company, in the sector.
The dispute, which brings together commercial and strategic interests, promises to reshape the internet landscape in Brazil, especially in areas where terrestrial infrastructure is limited.
The initiative seeks to bring the Chinese company SpaceSail to Brazil, increasing competition in this market dominated by Starlink, as reported by telecommunications secretary Hermano Barros Tercius to BBC News Brasil.
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The plan is for this expansion to be formalized during Chinese President Xi Jinping's visit to the country on November 20, with the signing of memorandums of understanding.
However, there is still no exact date for SpaceSail to operate in Brazilian territory.
Musk crisis and the search for alternatives
The relationship between Elon Musk and Brazilian authorities reached a critical point recently, when the Supreme Federal Court (STF) temporarily suspended X, formerly Twitter, after disagreements over compliance with local laws.
This crisis has intensified the debate over the dependence of Brazil's internet infrastructure on Starlink.
According to experts, supplier diversification could reduce monopoly risks and protect national sovereignty in the digital sector.
Since August, SpaceSail has been in talks with the Brazilian government to facilitate its entry into the satellite internet market in the country.
Company representatives met with Vice President Geraldo Alckmin and presented the objective of starting operations by 2025, if they obtain the necessary licenses from the National Telecommunications Agency (Anatel).
How SpaceSail technology works
SpaceSail uses low-orbit satellites, known as LEO, to provide broadband internet.
These satellites, which orbit around 549 km from Earth, offer lower latency and higher connection speeds compared to conventional satellites, which operate at altitudes close to 1.000 km.
This technical difference makes LEO technology particularly advantageous for remote areas, where the installation of physical infrastructure, such as cables and antennas, is difficult and costly.
Starlink currently has around 6 satellites, while SpaceSail plans to launch up to 15 satellites by 2030.
This expansion potential puts SpaceSail in a position to directly rival Musk's company, offering an alternative for the Brazilian market.
Memorandum of Cooperation: A Strategic Agreement
During his visit to China in October, Hermano Tercius revealed that Brazil and China are negotiating a technical cooperation agreement that will allow the installation of SpaceSail in the country.
The objective, according to the secretary, is to enable SpaceSail to offer its services to both the private and public sectors, including schools and government institutions in remote regions.
This collaboration may also include the use of the Alcântara Launch Center (CLA), in Maranhão, as a base for SpaceSail satellite launches.
“This would benefit both sides, facilitating SpaceSail’s launch schedule and promoting the use of the CLA for new projects,” Tercius highlighted.
Another agreement under discussion involves the construction of a geostationary satellite aimed at meeting Brazil's communications needs.
There is still no definition regarding the exact purpose of this satellite, but it could serve both telecommunications functions and defense systems.
Starlink: dominance and controversies
Starlink, Musk's SpaceX arm, is Brazil's main satellite internet provider, with a 45,9% market share, according to Anatel data from 2023.
The service is essential for isolated regions, such as the Amazon, where many users depend on this connection to access the internet.
In a year and a half, Starlink has jumped from fifth to first place in the national market, reflecting its rapid expansion and the growing demand for internet in remote areas.
However, the recent suspension of X in Brazil by the Supreme Court raised concerns about the country's vulnerability to Musk's services.
Sources close to the government say that Starlink's control over the market is viewed with caution, especially due to the risks associated with dependence on a single foreign provider.
Impact of possible competition in the sector
According to Thiago Ayub, CTO at Sage Networks, Starlink's dominance reflects the quality of service, but also exposes the Brazilian market to monopoly risks.
“Having multiple suppliers is a strategic necessity, as it enables healthy competition, which is essential for the country to become less dependent on a single provider,” explained Ayub.
For China, the expansion of its satellite technology via SpaceSail represents a strategic step.
In 2020, China's National Development and Reform Commission highlighted the creation of satellite internet infrastructure as one of its short- and medium-term priorities.
This policy reinforces SpaceSail's central role in expanding China's digital influence.
Brazil between monopoly and digital sovereignty
The need to reduce dependence on Elon Musk's services was heightened after his public statements of support for former President Jair Bolsonaro and criticism of Minister Alexandre de Moraes, who is leading actions against fake news.
For the Lula government, strengthening alternatives like SpaceSail is a way to ensure that the country's digital infrastructure is not subject to the interests of a single company.
In a recent interview, President Lula stated that Elon Musk must respect Brazilian laws and that Brazil cannot be subject to external impositions.
This stance indicates the government's intention to attract competitors to the satellite internet sector, promoting a more independent approach.
SpaceSail's entry into the Brazilian market could provide the country with a viable alternative to Starlink, fostering provider diversity and ensuring a more competitive market.
From these new perspectives, it will be interesting to observe how the balance of the Brazilian telecommunications sector may evolve in the coming years.
Do you think Brazil should invest in more satellite internet providers to reduce its dependence on Musk and promote digital sovereignty? Leave your comment!
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