By Nate Scherer, American Consumer Institute
In the aftermath of the 2024 presidential election and the changing of the guard at the Federal Communication Commission (FCC), there is still much unknown about the Commission’s policy objectives for the next four years. However, one little-known policy area deserving of attention is antiquated FCC regulations governing power levels for U.S. satellite systems. Modernizing these regulations is overdue and would improve industry innovation, encourage market entry, and provide regulatory certainty to companies already operating broadband satellite constellation networks. Consumers will benefit as a result.
Presently, FCC satellite regulations rely on a metric known as the equivalent power flux density (EPFD), which is used to calculate appropriate power levels for radio signals that are transmitted between satellites and ground equipment. Originally designed by the United Nations International Telecommunications Union (ITU), the goal of these power limits is to protect geostationary orbit (GSO) satellite systems from signal interference from newer non-geostationary orbit (NGSO) systems. However, these limits have stood in the way of technological innovation and next-generation NGSO systems providing consumers with better coverage and faster service quality.
These FCC satellite regulations were adopted more than two decades ago, and much has changed with satellite technology in that time. GSO satellites—high-altitude satellites that follow an earth-centered orbit that matches the earth’s rotation—are no longer the only type of satellite on the block. Newer, more advanced NGSO satellites—including low-earth orbit (LEO) satellites and medium-earth orbit (MEO) satellites—do not occupy the same stationary position as GSOs. This closer proximity allows them to provide better and faster service with lower latency (delays) than older legacy systems.
Companies like SpaceX and Amazon are already busy launching promising LEO satellite internet constellation systems like Starlink and Project Kuiper to provide high-speed internet to more people. These satellite systems have enormous potential to help close the digital divide since many Americans reside in remote locations that are difficult to reach using other technologies. For the same reason, these systems have the potential to serve as a viable alternative to other legacy technologies and connect communities much faster.
Unfortunately, government policies and the existing ITU satellite regulatory framework, intended to protect radio spectrum access for older GSO satellite systems, have had the practical effect of needlessly restricting the emergence and operation of newer LEO systems. Companies operating these systems must artificially reduce their radiofrequency power to remain compliant and avoid possible radio interference, thereby reducing signal quality and harming service—problems that can be easily resolved with updated rules.
Indeed, SpaceX made this very same argument in an August letter sent to the Commission petitioning the agency to update power restrictions to meet the needs of the modern space age. In the letter, SpaceX argues that burdensome “EPFD limits have imposed wide-ranging constraints and costs on virtually all aspects of next-generation satellite systems.” In other words, antiquated rules written for another era were imposed on modern satellite systems, with adverse effects on technological innovation and quality of service. SpaceX rightly noted that it would be a mistake for the FCC to wait around for the ITU to update these rules and that the Commission should move quickly to establish a clear plan for satellite technology in the 21st century.
With the new year fast approaching, and the FCC leadership slated for a shakeup, now is the time for the Commission to make this happen. Modernizing satellite power levels will remove unnecessary regulatory constraints that will better allow the next generation of satellite systems to reach their full potential of delivering high-quality service to millions of Americans. This new framework can both protect older GSO systems while also allowing space for new market entrees, providing the industry with more competition, and American consumers with more quality choices.
The only question now is whether the FCC will seize the opportunity.
Nate Scherer is a policy analyst with the American Consumer Institute, a nonprofit education and research organization. For more information about the Institute, visit us at www.TheAmericanConsumer.Org or follow us on X @ConsumerPal
