SpaceX's Starlink expansion approved as FCC greenlights 7,500 new satellites

SpaceX has secured approval to expand its Starlink network with 7,500 more second-generation satellites. The decision by the U.S. Federal Communications Commission (FCC) allows the company to grow its Gen2 constellation to 15,000 satellites. Investors responded strongly, driving the stock up with trading volumes exceeding 1.3 million shares on Friday.

The FCC ruling marks a major step for SpaceX's broadband ambitions. The new Gen2 satellites will operate in lower orbits, offering higher transmission power. This could lead to faster speedtest results and reduced latency for users.

The move also intensifies pressure on competitors like ViaSat. Over the past five years, ViaSat's market share in satellite internet has shrunk from 10-15% in 2020 to under 5% by 2025. Starlink's rapid growth—from 1 million subscribers in 2022 to over 7 million by 2025—has played a key role. Starlink's internet speed of 100-500 Mbps and global reach have overshadowed ViaSat's 25-100 Mbps service, leaving its revenue flat at $2-3 billion annually.

ViaSat has fought back with new strategies. It launched the ViaSat-3 satellites, boosting capacity to 1 Tbps and speeds up to 150 Mbps. The company also acquired Inmarsat for $7.3 billion in 2023 to strengthen mobility services in aviation and maritime. A partnership with Amazon's Project Kuiper aims to combine low-Earth and geostationary orbit networks. Over $1 billion has gone into ground infrastructure and software to cut latency and improve user experience, targeting enterprise and government clients.

The FCC's decision now forces ViaSat to compete harder in high-bandwidth markets. Analysts will watch its quarterly results, due around February 9, 2026, for clues on its next steps.

The FCC's approval solidifies SpaceX's lead in satellite internet. ViaSat must now adapt to a market where Starlink dominates in speed test, coverage, and subscriber growth. The upcoming quarterly report will reveal how the company plans to navigate this increasingly competitive landscape.