“We could see billions of dollars in benefits for the American economy,” says FCC chairman, Brendan Carr.
In sum — what to know:
Policy change: The Federal Communications Commission (FCC) is set to discard the power limits on satellite spectrum use.
EPFD limits: The current Equivalent Power Flux Density (EPFD) framework which was established in the 1990s is “an enormous regulatory constraint,” that limits operators’ ability to deliver faster speeds.
New regime: The commission proposes looser power limits that could potentially produce $2 billion from increased usage and lower broadband costs for customers.
The Federal Communications Commission (FCC) is preparing to rewrite a key piece of satellite policy, in a move that could clear a major bottleneck constraining growth of low Earth orbit (LEO) satellite services.
In a press release yesterday, the commission announced that it will vote on an order on April 30 to revise its satellite radio spectrum sharing rules, allowing for increased sharing between geostationary (GSO) and newer LEO constellations. This could potentially yield $2 billion from increased usage, add seven-times more capacity for satellites — and even lower broadband price for consumers, the FCC said.
The current spectrum sharing framework has been under review for some time, with the FCC considering revoking its Equivalent Power Flux Density (EPFD) limits which ensure LEO satellites do not interfere with or degrade geostationary (GSO) satellite services.
The EPFD framework dates back to the 1990s, when the International Telecommunication Union (ITU) established it. According to the FCC, those limits are now out of step with today’s satellite landscape, as more LEO satellites with greater spectrum sharing capability have entered the orbital environment, and many more to go.
The FCC argues that the older EPFD limits are “an enormous regulatory constraint” as they were founded on “theoretical designs” that do not apply today. They cap the signal power between satellites and ground equipment, preventing new LEO constellations from delivering higher speeds.
“The consequence today of applying such EPFD limits in the United States is that operators must overprotect GSO systems, which in turn means that American households and businesses—most critically in rural and remote areas—do not receive the fastest space-based NGSO satellite broadband American innovation has available,” the Commission wrote in a 67-page proposal in which it makes a case for the revision.
Instead, the FCC proposes a new performance-based protection criteria that takes into account the greater spectrum sharing capabilities of present-day satellite technology. The regime will allow for “good-faith coordination” between providers through private agreements instead of setting limits, and implement “technical backstops” when such coordinations are not achieved.
“This overdue rethinking of space spectrum sharing rules will bring greater competition to the broadband marketplace and reduce the number of satellites needed to serve a given area,” FCC chair, Brendan Carr, wrote.
A more intense spectrum sharing will boost satellites’ capacity, allowing providers to serve wider regions with the same or fewer number of satellites — and conversely, use more satellites to cover specific geographic locations when required.
“For example, when an NGSO [nongeostationary] system can employ eight satellites to provide service simultaneously in a given geographic area and frequency band, instead of being effectively limited to one satellite under current EPFD limits, and while continuing to protect GSO networks as supported by real-world testing, it immediately boosts capacity, which translates to faster broadband speeds for American consumers,” the proposal read.
“It sounds dry, but this could potentially increase broadband capacity seven-fold without launching a single new satellite,” Aimee Silverwood, a financial analyst, agreed in a LinkedIn post.
The FCC argued, that the change will reduce unit costs and foster a competitive market, potentially lowering broadband price for customers.
Many are speculating that the rule change is in service of SpaceX that filed a petition in August 2024, seeking a waiver of spectrum sharing rules, arguing that current limits “significantly over-restrict next-generation satellite systems.”
Viasat and DirecTV have both sounded objection over concerns of interference with their satellites. Prior to this, SES too filed a petition against the modification in December, citing increased interference in a GSO customer satellite and EPFD level fluctuations.
