SpaceX near rocket market monopoly is ‘huge concern:’ Lazard banker

PARIS – A Lazard investment banker has sounded the alarm about Elon Musk’s SpaceX’s dominance in the rocket launch market as the industry waits for U.S. competitors to begin flying new rockets.

“I think this is a big concern,” Vikram Nidamaluri, managing director of Lazard’s Telecom, Media and Entertainment division, said during a panel discussion at the World Satellite Business Week conference on Monday.

Nidamaluri added: “Having such a dominant launch provider is probably not generally healthy for the commercial prospects of the industry.” “No one wants a monopoly to be suffocated at one point in the value chain. There are clearly other players who are ramping up production capacity, but I don’t think the timeline is moving quickly enough.”

Nidamaluri echoed concerns about rocket launch monopolies raised by other players in the space industry this year. Rocket launches are a potential bottleneck in the process of flying valuable satellites, spacecraft, and astronauts into orbit. Several other U.S. companies are working on launching competitors to SpaceX’s flagship Falcon rocket, but delays mean U.S. rivals are struggling to develop the next generation of operational rockets. .

A few days ago, SpaceX launched its 63rd mission of 2023. The company has already surpassed last year’s record of 61 missions while flying at his breakneck pace of launching every four days. Beyond the U.S. rocket market, SpaceX leads the world in both quarterly launches and mass of spacecraft delivered into orbit. The United States continues to single-handedly lead the United States in launching satellites and astronauts over its next closest geopolitical competitor, China.

SpaceX Vice President Tom Ochinello responded to Nidamaruri’s concerns during a separate panel discussion Monday at World Satellite Business Week, saying the rocket manufacturer is adding competitors’ satellites to its Starlink satellite internet service. I responded to Mr. Nidamaruri’s concerns, centering on whether or not to fly the aircraft.

“We’ve proven that, yes, we will,” Ochinello said. “We are a launch company first and we are here to provide launches.”

While Starlink is clearly SpaceX’s “large internal customer,” Ochinello said the company plans to launch its own satellites “on an as-needed basis to provide launches to competitors and customers alike.” “We are moving it to a place where it won’t get in the way.” SpaceX recently signed a deal with Canadian carrier Telesat to launch 14 missions to deliver Lightspeed internet satellites into orbit, and has previously launched other Starlink communications competitors such as OneWeb, Viasat and EchoStar. launching a satellite.

“I’m not too worried about this. We’re here for the launch,” Ochinello said.

During the same panel discussion, Tory Bruno, CEO of United Launch Alliance, pushed back against the idea that SpaceX has complete control of the launch market. ULA, historically the next biggest competitor to U.S. rockets, has completed only two launches through 2023 and is working toward the first launch of its next-generation Vulcan rocket in the coming months.

“I appreciate that feeling. [SpaceX] would be a benevolent monopoly, but I don’t think you’re a monopoly, and I don’t think it’s our plan for you to be a monopoly,” Bruno said.