A Chinese state-backed company, Spacesail, is preparing to launch a satellite service in Brazil, posing a challenge to Elon Musk‘s SpaceX operated satellite service, Starlink. This announcement aligns with Chinese President Xi Jinping‘s visit to Brazil, where he signed an upgraded partnership with President Luiz Inácio Lula da Silva on Thursday.
What Happened: Spacesail, which specializes in high-speed internet services through low Earth orbit satellites, has teamed up with Brazilian state-owned Telebrás to offer satellite communications and broadband Internet services. The companies plan to evaluate demand in regions lacking fiber optic infrastructure, with the service expected to launch by 2026, according to a spokesperson from Brazil’s communications ministry.
This move comes amid tensions between Musk’s SpaceX and Brazilian authorities over alleged misinformation on Musk’s social media platform, X. Starlink, which controls nearly half of Brazil’s satellite internet market, was recently fined for failing to comply with court orders to remove extremist content.
This development occurs as the U.S. expresses concerns over China’s increasing influence in Latin America, a region traditionally dominated by Washington. Spacesail plans to deploy 15,000 satellites by 2030, having already launched 36 satellites this year, according to Chinese state media.
Why It Matters: The entry of Spacesail into the Brazilian market is part of a broader strategy by China to expand its satellite internet capabilities globally. In August, China launched its Thousand Sails project, aiming to deploy over 15,000 low-Earth orbit satellites to provide worldwide internet coverage. This initiative is seen as a direct challenge to Musk’s Starlink.
Meanwhile, Starlink has faced regulatory challenges in Brazil. In September, the Brazilian Supreme Court lifted a freeze on Starlink and X’s finances after the companies paid $3.3 million in fines related to non-compliance with court orders to block certain accounts accused of spreading misinformation. This legal battle has highlighted the complexities of operating in Brazil’s regulatory environment.
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