FCC Blocked from Granting Satellite Licenses to Companies That Also Sell 'Covered' Gear

The new Secure Space Act of 2025 is making a major, immediate change to who gets to operate satellites and ground stations in the U.S., essentially telling certain communications equipment providers to choose a lane. This bill amends the existing Secure and Trusted Communications Networks Act of 2019, adding a new rule that completely prohibits the Federal Communications Commission (FCC) from granting satellite licenses, U.S. market access, or earth station authorizations if the applying entity—or any of its affiliates—also produces or provides “covered communications equipment or service.” This restriction applies to all new applications starting the day the Act becomes law, and the FCC has one year to iron out the specific rules.

The 'Covered' Conundrum: Who's Out?

This is the part that matters most: the bill creates an absolute barrier to entry for any company that fits the description of providing “covered communications equipment or service.” If you’re a vertically integrated company—meaning you both make the gear and want to operate the satellite network—you’re likely blocked. The bill defines an affiliate broadly, meaning if a parent company owns just 10% of a restricted equipment manufacturer, the entire satellite operation of that parent company could be denied access. For a major global tech company that might have dozens of subsidiaries, this could force massive corporate restructuring or divestiture just to keep their satellite plans alive in the U.S. market.

Ground Control: Earth Stations and Gateways

To understand the real-world impact, you need to know what they’re restricting. The bill targets individually licensed earth stations and blanket-licensed earth stations (the ground antennas that communicate with satellites) and gateway stations (the central hubs that route traffic). If a prohibited company wants to build a gateway station in a remote area to provide broadband internet, the FCC must say no. This is a big deal because these ground stations are the physical link between the space internet and the actual users on the ground. By blocking the license for the ground station, the bill effectively cuts off the satellite system from U.S. consumers entirely.

The Problem with the Missing Definition

Here’s where the policy gets shaky: the term “covered communications equipment or service” is used to trigger this absolute ban, but the text provided doesn't define it. This lack of definition is a huge regulatory wild card. Right now, it’s unclear whether this applies only to the equipment already restricted under the 2019 Act (like gear from specific foreign adversaries) or if the FCC can use this as a blank check to restrict any equipment it deems a security risk in the future. For companies trying to plan multi-billion dollar satellite constellations, this ambiguity is a nightmare. It means their entire business model hinges on a definition that doesn't exist yet, granting the FCC immense, immediate power to shape the future of the U.S. space economy based on rules that haven't been written.

Immediate Impact vs. Long-Term Uncertainty

For the average person, this bill is about who gets to provide your next generation of high-speed satellite internet. If this Act targets major global players with deep pockets, it could limit competition in the satellite broadband market, potentially affecting service costs and availability down the line. While the stated goal is clearly national security—preventing entities linked to potentially hostile foreign governments from controlling vital U.S. space infrastructure—the immediate effect is market restriction. The clock is ticking for the FCC to define the rules, but until then, any company that might be on the wrong side of that vague “covered” definition faces an immediate shutdown of their U.S. satellite ambitions.