Radio frequencies for space – Zoff about huge space project from Liechtenstein
Zoff about huge space project from Liechtenstein
Chinese and US investors are arguing over who gets to build satellite internet. Right in the middle: a company from Vaduz.
The small German company Kleo Connect had big plans in 2017: with radio frequencies, they wanted via the Liechtenstein company Trion Space set up a global broadband satellite network. As an infrastructure, it should advance fast internet and autonomous driving. It was the time when Elon Musk’s company Space-X was also trying to get frequencies for its Starlink broadband network.
But what began so ambitiously soon met with an unexpected willingness to invest and sleepiness. And also to a changed geopolitical world situation and Chinese investors who are reaching for the coveted radio frequencies in Liechtenstein.
Trion was 85 percent owned by the Liechtenstein investor Michael Frommelt and 15 percent by Kleo Connect. The company from Vaduz had already secured frequencies in the so-called Ka band in 2014. And so likely that the Trion licensees in the Ka-band have priority over many other users who came later. That’s what the International Telecommunication Union (ITU) says.
The Europeans had the frequencies, the Asians the money
With this treasure in his pocket, Kleo co-founder Matthias Spott is looking for investors, but that turned out to be difficult. One of the anecdotes is that he was turned down by the German car companies. Today, the Chinese carmaker Geely is investing hundreds of millions of dollars in a satellite network to be able to control autonomous vehicles.
Spott found investors in China in 2018, including the satellite company Shanghai Spacecom Satellite Technology (SSST). They took over 53 percent of Kleo, the founders held 45 percent through their German holding company Eighty Leo, and Michael Frommelt held the rest.
The geopolitical situation was different: the Silk Road trade route was to be revived, and US authorities had just approved the Chinese company Midea to take over the German robot company Kuka. Magnificent deals were announced for the space entrepreneurs: in the Trion consortium, Kleo was to take care of the arrangement of the satellites, and SSST was to build the satellites. The Europeans had the frequencies, the Asians the money and market access in China.
Mutual recriminations increasingly hampered the project
But the founders didn’t think it was that great. According to their own statements, the Chinese invested 120 million euros and launched two demo satellites called KL-Alpha into space in 2019. However, the European side accuses the Chinese of not being involved, as is usual in a joint venture. They would also have provided hardly any information about the satellites.
The Chinese accuse the Europeans of failings, especially in terms of action and financing. For founder Spott, this sounds pretend that the investors were probably only interested in the frequencies.
Former Kleo CEO Mark Rigolle told the Liechtenstein newspaper “Wirtschaft regional” that it “appears as if the Chinese side wants to use the European shell to launch a Chinese satellite project”. Around sixty court cases are now underway to resolve the dispute.
“The Chinese have not kept to the treaties.”
At the same time, something strange was happening that could support Rigolle’s assumption: “The Chinese investors simply created facts and launched two more satellites in August 2021,” says Kleo Managing Director Clemens Kaiser. “This still with an identifier that the satellites have associated with Kleo” – KL-Beta. The industry speculated, Kaiser is still surprised today. Three more demo satellites were sold in 2019, but they never came.
As for the information about the satellites that Spott complained about, Rettig says that these correspond to the requirements of the ITU. The three demo satellites are probably no longer necessary “due to project delays and interim technological leaps”. And the “ghost satellites” of 2021? “This was an independent development project with no connection to us.”
According to Rettig, SSST in Shanghai will now manufacture the first 30 of 600 satellites for the European project. However, half is to be developed and built in Europe. This is possibly as a concession to the Liechtenstein supervisory authority, which is currently reviewing the business plans before the final frequency assignment and does not want to comment yet.
By 2028, 600 satellites will cover the entire earth
Rivada boss Ganley is convinced that the frequencies have been withdrawn from Asian investors. “The Chinese will no longer be involved in any way, they’re out,” he says. He just presented his concept at the Satellite trade fair in Washington: 600 satellites on 24 orbits at a thousand kilometers altitude to cover the earth.
In contrast to the competitor Starlink, there should only be a few ground stations because the satellites communicate by laser. “We offer much more security, much lower latency and more speed,” he enthuses, “similar to or better than terrestrial fiber optics.” Rivada will attract customers from the telecom, energy and shipping sectors, as well as governments.
“With Rivada, we now have the investor on board who can take the project to a new level.”
In order to meet ITU deadlines, the first satellites are scheduled to be launched at the end of 2024. The satellite formation should be ready by mid-2028. For the construction, Ganley founded the subsidiary Rivada Space in Munich, which is now asking for offers from satellite builders. According to Ganley, investors from parent company Rivada Networks are funding the project.
Founder Spott is satisfied: “With Rivada we now have the investor on board who can take the project to a new level.” And the geopolitical situation has changed again since the Ukraine war. It remains to be seen how Liechtenstein will decide in the near future.
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