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How Subsidies May Create a Space Monopoly
Townhall.com ^ | June 26, 2021 | Andrew Quinlan

Posted on 06/26/2021 4:31:46 AM PDT by Kaslin

The government has handed Elon Musk the keys to the city once again.

The Federal Communications Commission recently awarded a nearly $1 billion subsidy to Elon Musk’s SpaceX, and the company is now ready to use it to litter the sky with thousands of the company’s new Starlink satellites.

With these new satellites, Starlink hopes to bring internet to thousands of places across the world. But some are concerned that this government subsidy could lead to a slippery slope of a space monopoly.

Because of the number of lower-Earth orbit satellites that Musk wants to launch, the sky could quickly become crowded — so crowded that it becomes dangerous for competitors or anyone else seeking access to space.

While monopolies are often synonymous with inefficiency, some have accused Musk’s satellite internet project of being too potentially hazardous even at this early stage. The Wall Street Journal reported that, “The critics’ main argument is that Mr. Musk’s launch-first, upgrade-later principle, which made his Tesla Inc. electric car company a pioneer, gives priority to speed over quality, filling Earth’s already crowded orbit with satellites that may need fixing after they launch.”

This isn’t the first time that the public has called SpaceX’s safety into question. In typical “move fast and break things” Silicon Valley fashion, the company seems to always prioritize speed over efficiency and responsibility.

For example, in December, the Federal Aviation Administration repeatedly tried to ground one of its launches over concerns that weather conditions made it more likely that nearby homes would be endangered in the event of an explosion. The company ignored the FAA’s warnings, and its rocket then exploded. Perhaps only the fact that the explosion happened upon landing, instead of mid-flight, prevented a real disaster.

What will it mean for safety and innovation if the government effectively allows this company to become the only space satellite game in town?

Competition is what drives productivity, low costs, and innovation. Each of those items is particularly important in the governmental realm, where budgetary concerns always run rampant and quality control is supposed to be of paramount concern. Essentially granting a space monopoly to a company whose satellite program has already faced criticism for being too risky is something that only Washington, D.C. could get away with.

Musk knows this. He has always been wary of monopolies, even once accusing the government of creating one on military launches, so he should understand why the Starlink project has drummed up so much concern over the future of competition in space.

In the past, Musk has also argued that the American government is the greatest monopoly of all. He seems to believe that the government prevents companies from achieving their goals and ability to move forward. So do I; however, his companies are doing just fine largely thanks to the government’s help. Starlink is just the latest example of this.

As the space race moves forward, it will be interesting to hear how Mr. Musk feels about monopolies should regulators and federal officials ever decide to prioritize competition instead of handing out subsidies without concern for the consequences.


TOPICS: Culture/Society; Editorial
KEYWORDS: elonmusk; space
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1 posted on 06/26/2021 4:31:46 AM PDT by Kaslin
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To: Kaslin

You know that Bozo is jealous.


2 posted on 06/26/2021 4:48:43 AM PDT by HighSierra5 (The only way you know a commie is lying is when they open their pieholes.)
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To: Kaslin

We’re not talking MONOPOLY money here, but SPACE FORCE might be worth it. : )


3 posted on 06/26/2021 4:52:23 AM PDT by PGalt (Past Peak Civilization?)
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HOORAY Elon


4 posted on 06/26/2021 4:55:44 AM PDT by PGalt (Past Peak Civilization?)
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Check out Jackson Hole Wyoming...the town square.


5 posted on 06/26/2021 4:57:54 AM PDT by PGalt (Past Peak Civilization?)
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To: andrew

Speaking of Wyoming...

https://www.breitbart.com/politics/2021/05/05/poll-liz-cheney-underwater-with-wyoming-voters/

her career might not launch any further.

R.I.P. Andrew


6 posted on 06/26/2021 5:01:39 AM PDT by PGalt (Past Peak Civilization?)
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To: Kaslin

OLIGARCHY

...and we're doing it to ourselves....

7 posted on 06/26/2021 5:09:00 AM PDT by Roccus (Prima di ogni altra cosa, siate armati!)
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To: Kaslin

So is this author proposing we give more money to Boeing and Bezos instead?

The reason SpaceX wins these contracts, whether for internet access or moon landers, is because they can deliver a product at a price vastly below their competitors.

Anyone who can do that should be justly rewarded. That’s how the free market works.


8 posted on 06/26/2021 5:16:10 AM PDT by Renfrew
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To: Renfrew
He didn't say it will create a monopoly. He said it may create a monopoly. Which is a huge difference. Sostopyerbitchin!!!
9 posted on 06/26/2021 5:30:27 AM PDT by Kaslin (Joe Biden will never be my President, and neither will Kamala Harris)
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To: Kaslin

Entire article is full of nonsense.
I can’t see even one single thing in the article that makes any sense.


10 posted on 06/26/2021 5:31:31 AM PDT by SmokingJoe
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To: SmokingJoe

I would have to say that 10’s of thousands of disposable leo satellites is a bit concerning. Could be up to 50k according to Wiki.


11 posted on 06/26/2021 5:37:22 AM PDT by ltc8k6 ( .)
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To: Renfrew
Bezos, Amazon, Blue Origin are a great big joke when it comes to space.
Despite Blue Origin being founded a good two years before SpaceX, Blue Origin is yet to send any spacecraft into orbit l,let alone a human being into orbit. SpaceX sends astronauts to orbit and to the space station routinely. Again, Blue Origin is a great big joke.
Bezos thinks he should get billions from taxpayers because he spent hundreds of millions to help Dementia Joe steal the elections.
12 posted on 06/26/2021 5:39:04 AM PDT by SmokingJoe
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To: Renfrew

The reason SpaceX wins these contracts, whether for internet access or moon landers, is because they can deliver a product at a price vastly below their competitors.


And because the ‘competition’ does not actually have a product to compete against SpaceX.


13 posted on 06/26/2021 5:41:27 AM PDT by PIF (They came for me and mine ... now its your turn)
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To: ltc8k6
Right now, SpaceX has only 1800 satellites in orbit, not “ tens of thousands”. And SpaceX has a license for only 12,000 satellites.
It always amuses me when SpaceX critics keep bleating on about space being overcrowded with Spacex satellites. Spacex satellites are in LEO at around 320 miles from earth. If you look at that in terms of surface area, we have a surface area that is vastly bigger than the earth's surface area. The earth has 8 BILLION humans on it, and most of the earth's surface is covered with water.
Even if we had a million satellites in LEO orbit, it wouldn't make one whit of difference to life on earth.
14 posted on 06/26/2021 5:48:28 AM PDT by SmokingJoe
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To: Kaslin

The article is total bullshit.....


15 posted on 06/26/2021 5:51:18 AM PDT by Wonder Warthog (Not Responding to Seagull Snark)
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To: Kaslin
He said it may create a monopoly.

Except the Chinese, Indians, British, French and right herd in America there are plenty of tough new and old space companies, some backed by their governments, that are using every trick in the book to try and put SpaceX out of business.

16 posted on 06/26/2021 5:55:47 AM PDT by SmokingJoe
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To: PIF
And because the ‘competition’ does not actually have a product to compete against SpaceX.

Yup.
Bezos/Amazon/Blue Origin don't.
And Boeing.....they and SpaceX got given the contracts to develop the module to deliver astronauts to the Spacestation on the same day.
SpaceX has been delivering astronauts to the Spacestation since last year. Meanwhile, Boeing is still struggling to even deliver a test module to the Spacestation.

17 posted on 06/26/2021 6:02:53 AM PDT by SmokingJoe
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To: Kaslin

Clickbait and naysaying.

Getting big contracts because SpaceX is the only one delivering at scale.

Space is called space because there’s a lot of it.

Starlink is conscientious: satellites are low reflectivity, small, light, automatically dodge possible collisions, and de-orbit promptly as appropriate.

SpaceX is building launch site in a swamp with tents.

There is no “monopoly” angle here. Want to compete? Get busy.


18 posted on 06/26/2021 6:07:37 AM PDT by ctdonath2 (All worry about monsters that'll eat our face, but it's our job to ask WHY it wants to eat our face.)
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To: Kaslin

I’m lucky to even have electricity within 500 feet of my lot. LTE on a good day but no phone line much less DSL. Starlink is supposed to go “live” in September. A lot of people need it and no one else is close to delivering.


19 posted on 06/26/2021 6:12:40 AM PDT by mikey_hates_everything
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To: SmokingJoe
It's not an article, it's on Op-ed. Op being short for Opinion, and ed for editorial. Why not leave it at that?

As the saying goes. Everyone has the right to his or her opinion.

20 posted on 06/26/2021 6:21:15 AM PDT by Kaslin (Joe Biden will never be my President, and neither will Kamala Harris)
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