The space technology startup GalaxEye, based in Bengaluru, has completed the acquisition of StarOps, a company specializing in spacecraft design. The goal of the deal is to consolidate a larger volume of satellite development processes under one roof.
The acquisition allowed GalaxEye to integrate StarOps' team for spacecraft design, satellite platforms, and indigenous subsystem technologies. GalaxEye utilizes its OptoSAR technology to create Earth Observation (EO) satellites.
GalaxEye noted that StarOps possesses experience in areas such as spacecraft systems engineering, propulsion systems, avionics, onboard computing, guidance and navigation, structures, electrical systems, as well as missions and ground operations. StarOps' satellite platforms cover weight classes of 50 kg, 150 kg, and 250 kg, with over 66% of the company's satellite systems being localized.
The strategic importance of this purchase lies in vertical integration, which gives the company greater control over the stages of product design, manufacturing, and operation, reducing dependence on external suppliers. Although the deal itself does not determine the speed of realizing these benefits in terms of deployed spacecraft or commercial revenue, it potentially ensures better control over design choices and testing and development schedules.
Co-founder and CEO of GalaxEye, Suyash Singh, stated that this transaction is part of broader efforts to develop in-house capabilities in spacecraft. He emphasized: '...we are significantly strengthening our capabilities in aerospace engineering. Together we are building a company capable of developing, designing, and operating advanced space systems from India for the world.'
StarOps was founded in 2022 and has roots in TeamIndus, an early private Indian space venture. Some members of its engineering team previously participated in TeamIndus' lunar lander and rover projects. StarOps focused its activities on developing satellite platforms and implementing space technologies in India.
This collaboration is particularly relevant for GalaxEye because the planned EO systems combine Synthetic Aperture Radar (SAR) with optical imaging. SAR uses radar signals to create images and can operate through clouds and at night, while optical sensors capture traditional imagery. GalaxEye calls this combination OptoSAR, asserting that it is designed to provide Earth observation in all weather conditions, day and night.
Earth observation is becoming an important part of this expansion. The government has approved a public-private partnership led by Pixxel together with Dhruva Space, SatSure Analytics India, and Piersight Space to create an EO satellite constellation.
India now permits up to 100% foreign direct investment in the space sector, with automatic limits varying depending on the type of activity. Satellite manufacturing and operation, satellite data products, and ground segments allow for automatic investments up to 74%, while the manufacturing of satellite components and systems allows for 100% via the automatic route.
SpaceX is at a critical juncture to convert its space aspirations into tangible growth, with the performance of the Starship rocket considered fundamental for Elon Musk's company's upcoming endeavors.
After going public this year, the company saw a drop in its stock price following the release of its first quarterly report as a public entity. Investors expressed apprehension due to the high investments made, despite management maintaining a very aggressive expansion forecast.
The main challenge lies in developing a vehicle capable of transporting substantially larger payloads at costs much lower than current systems. Without the success of Starship, projects related to new satellites, space artificial intelligence, and the expansion of the Starlink network risk being hampered.
Historically, SpaceX's trajectory has been built primarily by the Falcon 9, the rocket responsible for over a decade of launches and a constantly increasing operational frequency. In 2025, the company conducted 165 missions with this model, performing nearly one launch every two days.
However, the capacity of the Falcon 9 has begun to be perceived as insufficient given the corporation's new objectives. This equipment can carry about 23 tons to low Earth orbit, while the next generation of projects demands vehicles capable of transporting considerably greater volumes.
Starship was specifically designed to meet this need. With an estimated capacity of 100 tons, which is approximately four times more than the Falcon 9, the rocket would enable the launch of more advanced and larger satellites, including future versions of the equipment used in the Starlink internet service.
Currently, satellite operations constitute SpaceX's largest source of revenue. In the second quarter, Starlink generated revenue of US$ 4.29 billion, representing an increase of approximately 66% compared to the same period last year.
Beyond expanding satellite connectivity, the company associates Starship with an even bolder goal: placing a large quantity of AI-equipped satellites into orbit. This initiative would depend on much lower launch costs than current ones, given the mass of the required devices.
Analyses by MoffettNathanson specialists suggest that about 143 development-phase Starship missions would be necessary to place into space a computational capacity equivalent to a large terrestrial artificial intelligence center, with a power output of approximately one gigawatt.
The reduction in costs is intrinsically linked to the rocket's ability for full reusability. Unlike the Falcon 9, which only reuses the first stage, Starship was designed to recover both the propellant and the second section of the vehicle.
Evercore ISI analysts estimated that the cost of transporting cargo with the Falcon 9 reaches about US$ 2,700 per kilogram sent to orbit, while Starship has the potential to reduce this value to approximately US$ 185 per kilogram, provided the project achieves the expected performance.
Even after a 22% decline in shares since the start of trading, SpaceX maintains a high valuation, corresponding to about 28 times its projected future revenue. This level surpasses several established technology companies and significantly exceeds the Nasdaq index average.
In dialogue with analysts, Elon Musk stated that the company aims to drastically expand its space transport capacity. The executive affirmed that the goal is to raise the annual transport capacity from about 2,500 tons, achieved by Falcon rockets, to over one million tons with Starship, with the possibility of reaching ten million tons later on.
However, the development of the new rocket still faces hurdles. Although SpaceX has accumulated hundreds of successful launches with the Falcon 9, the Starship program started more turbulently, with five of the 13 flights conducted showing failures or relevant problems during testing.
The company has registered recent progress, including two successful Starship launches in the same year, although it has not yet managed to recover and reuse the boosters. New missions were scheduled for the subsequent months.
Therefore, SpaceX's future is directly tied to its ability to consolidate Starship as a reliable operational platform. If the project achieves the expected results, the company can increase its presence in the space sector; otherwise, its biggest bets will remain limited by the capacity of current rockets.
SpaceX, the controller of Starlink, is developing a terrestrial telecommunications service in the United States aimed at directly competing with major market operators such as AT&T, T-Mobile, and Verizon. The objective of this initiative is not to replace satellite internet services, but rather to complement them.
Currently, Starlink already offers a service called Starlink Mobile, which works in conjunction with American mobile carrier networks, such as T-Mobile, filling coverage gaps for cellular telephony in regions with weak or non-existent signals.
The current plan is strategic for SpaceX, as it centralizes the company's operations. To make this possible, the company acquired 65 MHz of wireless spectrum licenses from EchoStar last year for a value of US$ 19.6 billion (equivalent to about R$ 100 billion in direct conversion).
Although this spectrum is limited compared to the control held by rival operators, SpaceX suggests that it is suitable for building a competitive mobile network. This topic was discussed during a conference call regarding SpaceX's recent financial results.
During the broadcast, Gwynne Shotwell, the company's president, emphasized the plans for a hybrid operation. She stated that the spectrum acquired from EchoStar contains terrestrial components intended for mobile networks, indicating the intention to develop this terrestrial part. According to her, this way the company will have not only the capacity of its own Starlink satellites but also all the necessary hardware and system infrastructure to create a complete mobile service.
Elon Musk, who also participated in the presentation, addressed the potential limitation of the spectrum. He proposed an alternative to deploying large and expensive cell base stations, stating that there is confidence in the possibility of installing a large volume of small stations. These small stations would essentially be Starlink antennas that also provide connectivity in mobile spectrum bands and could be distributed in various locations.
As of now, there is no forecast for when the service combining Starlink satellites and the mobile network will be launched. SpaceX's plans are focused on the United States. However, in Brazil, this type of operation would require a satellite company to establish partnerships with traditional carriers, which could represent a challenge for Starlink.
Despite this, the company's expansion in Brazil continues. Recent data from Anatel shows that Starlink has 836,847 subscribers in the country, although the company itself reports having over 1 million customers.
SpaceX CEO Gwynne Shotwell stated on Tuesday that the company intends to build ground network infrastructure and transform Starlink into a full-fledged mobile service. This move places the satellite operator in direct conflict with terrestrial mobile networks and caused a drop in the shares of major American wireless carriers.
Previously, the company acquired licenses to use the 65 MHz radio frequency spectrum from EchoStar through two deals totaling $19.6 billion, concluded last year. SpaceX now plans to utilize these licenses because they include ground rights.
During a call following the earnings report release, Shotwell emphasized that the acquired spectrum has ground components, and the company is definitely planning to develop a ground network. She stated that she will build all necessary infrastructure to make Starlink a 'true mobile service' and expects to capture 'quite a few' customers from the three largest American operators.
This is the clearest signal yet that SpaceX plans to integrate its satellite constellation with ground infrastructure to sell a complete mobile product, rather than just the direct connection service it offers where terrestrial networks are unavailable. As a result, shares of US telecommunications companies Verizon, AT&T, and T-Mobile fell by 2.2%–4% in over-the-counter trading.
Starlink and SpaceX's broader connectivity operations remain a financial engine for the group, supporting Elon Musk's expenses for artificial intelligence, data centers, and next-generation rockets.
Experts warn that creating a national mobile business will require many years of capital investment and implementation. Existing American operators have spent hundreds of billions of dollars over three decades on acquiring spectrum, building and upgrading networks, and attracting subscribers—advantages that are difficult to replicate.
Craig Moffett of MoffettNathanson noted that if Starlink cannot secure an MVNO agreement with one of the operators that provides basic coverage, presenting a competitive consumer service from Starlink within the next five years is extremely difficult. An MVNO is selling a mobile service under its own brand while leasing capacity from a network-owning operator.
David Burden of New Street Research stated more directly that it is pointless to try to replicate what terrestrial operators built over 30 years using only 65 MHz, especially when they have about 1 GHz between them.
Shotwell declined to name the cost of such construction, stating only that SpaceX has 'great and new ideas' on how to do it and that the approach will be capital-efficient.
Not everyone is skeptical. David Wagner, portfolio manager at Aptus Capital Advisors, believes the market may be underestimating the potential for a breakthrough, agreeing with Musk that investors are undervaluing this part of the business and asserting that existing operators risk falling behind due to SpaceX's pursuit of innovation.
As part of its current partnership with T-Mobile, SpaceX uses Starlink satellites to provide direct cellular connectivity for compatible phones outside normal coverage areas, thereby supplementing the operator's network rather than competing with it. Shotwell is now describing a business that will do both.
South African mobile operators are unlikely to face any threat from Starlink anytime soon. In fact, Starlink does not yet have a license to sell anything in the country.
SpaceX has not applied for a license with Icasa. The obstacle is the Electronic Communications Act requirement that individual license holders must own 30% of historically disadvantaged groups, a condition SpaceX claims it cannot meet. Communications Minister Solly Malatsi unveiled a policy direction in December 2025 instructing the Icasa regulator to recognize Equivalence of Equity Investment Programs (EEIPs) as an alternative, which SpaceX hinted at regarding local commitments of around 2 billion rand if it proceeded.
Icasa closed this path in May, stating it could not implement EEIPs without a prior amendment to the Electronic Communications Act by parliament. The government has since confirmed it will follow the legislative route—a process measured in years, not months. Icasa has not issued a new national license in 15 years.
Thus, while Verizon, AT&T, and T-Mobile assess a competitor with 65 MHz spectrum and ground buildout, Vodacom and MTN face a rival that cannot legally operate here—although both partners collaborate with it. MTN conducted direct cellular connectivity tests with Starlink, AST SpaceMobile, and Lynk Global, announcing the first satellite call directly to a mobile phone in South Africa last October. Vodacom's parent company, Vodafone Group, owns 5% of AST SpaceMobile—Starlink's closest competitor in direct cellular connectivity—and Vodacom collaborates with Amazon Leo for backbone connectivity. MTN Group CEO Ralph Mupita has long advocated for satellite operators to bear the same regulatory obligations as terrestrial ones regarding spectrum, data localization, and privacy, demanding 'a level playing field.' Shotwell's assertion that SpaceX intends to build ground infrastructure could significantly complicate refuting this argument.
