SpaceX Faces $1.67 Million Fine If It Fails To Launch Second Gen Starlink Satellites

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As part of its partial authorization to launch roughly 30,000 second generation Starlink satellites to orbit, SpaceX submitted a surety bond to the Federal Communications Commisison (FCC) at the close of last year to guarantee that it will meet the approval. The FCC's rules require companies authorised to launch satellites or use spectrum submit such bonds to ensure that they do not simply hoard spectrum, which is a crucial resource. SpaceX's filings with the regulatory body reveal that the bond has a maximum penalty of $1.6 million, which can be increased to as much as $6 million in the worst case scenario.

The Commission's approval, granted after a long drawn battle related to SpaceX's plans to use Starship to launch the satellites, became offical in Deember last year. It requires SpaceX to launch half of its planned satellites within six years of the grant and then launch the remaining satellites within the next three years.

However, instead of the 29,988 satellites that SpaceX had asked for, the FCC instead allowed it to launch up to 7,500 spacecraft due to concerns of "orbital debris and space safety," as it also noted that since SpaceX plans to also use these spacecraft for the V-band frequency spectrum instead of launching new spacecraft, the sum effect of the changes will actually lead to fewer spacecraft in orbit.

As part of the authorization, SpaceX had to submit a surety bond to the Commissionw, which will be forfeited should the firm fail to meet its obligations. At the same time, this failure will also reduce SpaceX's authorization to the number of satellites in orbit