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Since the launch of Sputnik I in 1957, satellite technology has to facilitate connectivity, including broadcast, cellular service, and broadband internet access. Recent advances in satellite technology through low earth orbit (LEO) satellites present an emerging opportunity to provide both individual and enterprise users—particularly those in underserved or hard-to-reach areas—with low-latency, high-speed connectivity. To leverage LEO satellites to advance connectivity, industry, civil society, and policymakers at all levels must work together to address several challenges facing LEO satellite development and adoption, including (1) promoting a sustainable competition environment; (2) facilitating LEO satellite market entry and coexistence with streamlined licensing frameworks and efficient spectrum sharing; and (3) integrating LEO satellites into existing and future digital access and inclusion programs.

What Are LEO Satellites?

Satellite technologies are divided into based on the orbital range they occupy: , , and . LEO satellites operate in the closest range to Earth, orbiting between 300 and 2,000 kilometers above the planet’s surface. At this altitude, (or lag time) is reduced, enabling LEO satellites to provide near-real-time communications with less signal power for transmission. This allows LEO satellites to be smaller in size than those in MEO or GEO, reducing the cost for development and deployment.

While LEOs can provide enhanced satellite communication services due to their proximity to Earth’s surface, they do come with tradeoffs. In particular, LEOs have smaller coverage areas than MEOs and GEOs, and they must constantly be in motion in order to offset the pull of gravity and stay on their orbital path. Due to their proximity, movement, and small size, a “constellation” of hundreds or thousands of LEOs is typically needed to provide consistent service to an area. Additionally, LEO satellites, which complete an orbit approximately every 90 minutes, are fuel-intensive to operate and prone to atmospheric drag, which degrades satellites over time. As a result, a typical LEO satellite lifespan ranges from 7 to 10 years.

How Do LEO Satellites Work?

LEO satellite systems consist of : the satellite constellation, user terminals, and ground stations. Since LEO satellites are in constant movement, user terminals and ground stations continually switch among different satellites within a constellation to maintain a user’s connectivity. While LEO satellites generally need to be within range of a ground station to send or receive data, satellites also use inter-satellite links to share data among themselves until the data reaches a satellite within range of a ground station. Advancements in intersatellite links, such as , help LEOs provide reliable connectivity, even in areas far from a ground station.

Satellites use —radio frequencies that transmit wireless signals—to send (downlink) and receive (uplink) information from user terminals and ground stations. Since available spectrum is limited, it is regulated nationally and internationally to promote global harmonization and to avoid , or signal disruptions. The International Telecommunication Union (ITU), an organization within the United Nations that coordinates spectrum globally, has allocated for satellite communications, including the L-, S-, C-, X-, Ku-, Ka-, and Q/V bands. Currently, the for connectivity-oriented LEO satellites are Ku- (12-18 GHz) and Ka- (26.5-40 GHz) bands.

How Do LEO Satellites Compare to Existing Connectivity Methods?

Recent advances have lowered the cost of LEO satellite development and deployment, bringing greater attention to the technology as a connectivity solution. For rural, remote, and sparsely populated areas, fixed wireline connectivity may not be feasible or cost-effective. While fiber or other wireline connections provide reliable high-speed internet, building out the necessary infrastructure requires significant investment and often lengthy timelines. Other alternatives—including cellular service, dial-up internet, and GEO satellites—are likely to offer slower speeds, greater latency, and suffer more service disruptions. LEO satellites can offer comparatively low-latency, high-speed internet access without extensive infrastructure buildout, making them a promising solution for providing connectivity in .

However, given that this is an emerging technology with , only a few companies currently offer commercial broadband through LEO satellites—and those that do are consumers for these services than existing wireline options. While service costs may decrease with scale and competition, affordability remains a serious concern. Similarly, it is unclear if LEO satellite internet providers will be able to consistently deliver competitive, quality services in all areas, especially as demand grows and systems experience heavier traffic. However, sinceLEO systems are global and continuously in motion, increasing capacity in a particular region is the same as adding capacity to the overall constellation. These kinds of tradeoffs concerning LEO satellite affordability, service quality, and capacity should all factor into its role in closing the digital divide.

LEO Satellite Use Cases

Whether LEO satellites provide an alternative or complementary service to traditional broadband methods, they are uniquely positioned to serve the needs of users in motion, areas where infrastructure is limited or damaged, and sectors with critical communication needs. For example, LEO satellites may be used in the following use cases:

• Vehicles and platforms in motion: In June 2022, the Federal Communications Commission (FCC) SpaceX’s Starlink and Kepler Communications for Earth Stations in Motion (moving or transportable ground terminals) allowing the use of LEO satellites to provide connectivity for , including cars, trucks, , and .
• Remote and hard-to-reach areas: Areas that are unserved or underserved by existing broadband infrastructure are beginning to turn to LEO satellite service to meet user needs. For example, in September 2020, the remote Hoh Indian Reservation in Washington to provide internet access to residents. In October 2024, the state of Maine to provide 9,000 free Starlink terminals to facilitate immediate internet access for users in unserved, hard-to-reach locations.
• Enterprise Internet of Things (IoT): LEO satellites can provide enterprise connectivity services, such as providing to increase network coverage, enhance cloud storage, and support for . LEOs can also provide connectivity for wide-spread IoT devices and machine to machine communications, from asset tracking and remote monitoring, to delivery drones and robotics.
• Natural disaster response: LEO satellite connections are being used in combination with GEO satellites to respond to , returning service to areas where existing infrastructure is damaged.
• Areas experiencing conflict: LEO satellites are also offering a way for areas experiencing conflict, such as and , to access connectivity for critical services.
• Community services: LEO satellites are being piloted to fulfill community network needs, including those of and .

In addition, the to authorize “supplemental communication from space” allows LEO (and GEO) satellites to transmit on select mobile carrier spectrum bands without the need for a ground station. Starlink and T-Mobile have been authorized to provide this service, which is currently limited to texting. At the same time, LEO operators can use spectrum to transmit directly to mobile devices without an arrangement with terrestrial mobile carriers (and potentially in direct competition with them). The most high profile example is to transmit directly to iPhones, both in the U.S. and potentially on a global basis.

Overview of LEO Satellite Competition Environment

As a relatively new and emerging field, only a small number of companies are actively operating or planning to launch LEO satellite systems, with SpaceX’s Starlink standing out as the clear frontrunner. In 2024, placed the total number of functioning satellites in space at more than 10,000, with around 60 percent belonging to Starlink. Already leading the market, Starlink originally planned to launch 12,000 satellites for its constellation, but later . Other companies – including (operating 630 satellites), (operating 198 satellites), (planning a constellation of 3,000 satellites), and (operating 80 satellites) – are racing to provide connectivity via LEO satellites.

At the same time, many countries—including the , , , and —are exploring opportunities to advance and invest in the commercial LEO sector. Others like Canada and the EU are developing and heavily investing in national LEO satellite systems. The Canadian government provided Telesat Lightspeed a to develop and operate a LEO network advancing national connectivity and defense. In December 2024, the European Commission a contract to build a multi-orbital constellation of 290 satellites for its Infrastructure for Resilience Interconnectivity and Security by Satellite (IRIS²) project. In China, —Guowang and Qianfan—have plans to launch 13,000 and 14,000 LEO satellites respectively. As the field of LEO satellite connectivity matures, the orbital range is expected to become increasingly crowded, limiting orbital and spectrum availability while increasing space traffic and debris.

Overview of LEO Satellite Regulatory Environment

Because spectrum is limited, the international treaty is used to govern and coordinate satellite operations to prevent interference. At the international level, the bands of spectrum globally and coordinates the registration of satellite frequency assignments and associated orbital positions of satellites. Satellite operators obtain licenses for spectrum use from their national regulators, who are responsible for ensuring registered satellite operators follow international guidelines as well as any specific national regulations. Filing a registered satellite operator with the ITU is a designed to identify and mitigate any potential conflicts between a planned system’s orbital characteristics, frequency bands, and intended service areas with an existing system. As such, once certain spectrum bands are in use, new entrants must design their systems around existing operators.

To deter early filers from “warehousing” spectrum, or reserving it for future use, satellite operators must deploy systems within seven years of the ITU receiving its request or their claim expires. For LEO satellites, operators are required to deploy 10 percent of a planned constellation within two years, 50 percent within five years, and total deployment within seven years to maintain their spectrum use. The Radio Regulations are regularly revised through the ITU’s (WRC), which convenes every three or four years to meet emerging spectrum needs.

In the United States, the for managing and licensing spectrum for commercial purposes, as well as non-commercial uses by local governments. The FCC must also authorize U.S. market access for operators licensed in another country. Meanwhile, the federal government use of spectrum. While the U.S. Department of Defense had previously overseen space situational awareness and space traffic coordination, the Trump Administration in 2018 that moved these responsibilities to the Department of Commerce. In 2024, the Commerce Department of its new satellite safety coordination system for spaceflight launches and orbital debris.

LEO satellites have a clear potential to advance universal connectivity and innovation by providing service to areas whose needs are not met by current technologies. As regulators and policymakers look to advance LEO satellite development and adoption, three key areas emerge for future collaboration: (1) promoting a sustainable competition environment; (2) facilitating LEO satellite coexistence through updated licensing frameworks and coordinated spectrum sharing; and (3) integrating LEO satellites into digital equity and broadband access initiatives. By tackling these challenges policymakers can advance LEO satellite solutions to bridge connectivity gaps to bring more people and businesses online.