9 ms·

SpaceX is buying communications smallsat operator Swarm Technologies

93 points by caiobegotti 5y ago

walrus01 5y ago
I have a theory they're buying it more for the engineering talent and personnel, than any intention to run a narrow-bandwidth cubesat M2M communications network as a separate thing to starlink.
- bpodgursky 5y ago
  Other than the sat-to-sat communications (which starlink is also planning) is there any real difference between the product offerings? Seems like a reasonable theory.
  - apendleton 5y ago
    Very different in the details. I commented above, but tldr: Starlink is suitable for high-bandwidth applications but requires a complicated, high-power antenna. Swarm is only suitable for very-low-bandwidth applications (IoT), but can get by with very simple hardware. They're not really competitors.
- duskwuff 5y ago
  That sounds likely. SpaceX is a lot further along in development than Swarm appears to be -- it's unlikely that they see much value in the specific technologies Swarm has developed. Interestingly, Swarm had launched some of their microsatellites on SpaceX vehicles.
- marsokod 5y ago
  My theory is more that they will add the functionality to Starlink. Worst case, you just plug the RF part of the swarm cubesat on the outside of a Starlink. This way Starlink immediately supports low power devices, has a ground segment for the end-users readily available, and solves the latency/backhaul problem that all these cubesat constellations have.
  - dom_hutton 5y ago
    It's worth noting that it won't be as simple as plugging in Swarms' payload - there will be singificant necessary engineering work to validate the RF and power characteristics of the integration. Interesting work I'm sure.
- sandworm101 5y ago
  My theory: they are buying out a potential competitor, and thier IP, before they become a threat. Killing them in the cradle as it were. It sends a strong signal to anyone else talking about satellite-based network services.
  - eganist 5y ago
    So they're pulling a Facebook/Instagram? Here's hoping someone with investigatory power is reading this.
  - grecy 5y ago
    > they are buying out a potential competitor I think it's pretty clear SpaceX doesn't have any competitors in the satellite constellation business. SpaceX will spend something like ten billion dollars to build out the full Starlink constellation using their own launch services, which are vastly cheaper than anything anyone else has. Potential competitors would have to spend an insane amount of money to launch their constellations, which basically means it will never happen.
    - sandworm101 5y ago
      So they are in violation of antitrust rules? If space is the future, SpaceX is the railroad and should not grant cheaper rates for cargo from its other businesses.
      - toomuchtodo 5y ago
        Good luck arguing this to regulators. They are cheap, but not the only option, both in the US and globally.
      - ctdonath 5y ago
        Can argue SpaceX is a global telecom company which is selling excess transport capacity to fund their transport cost center.
      - nickik 5y ago
whoknowswhat11 5y ago
Very complementary. They are going to have synergies obviously around launch (swarm sats are relatively tiny so cost now with spaceX for launch is going to be very low). Product is also differentiated. You want global low bandwidth (primarily M2M but can also be search and rescue etc) along with the higher bandwidth / power / footprint starlink stuff. Businesses often strugle with being competed against from the bottom - I hope SpaceX keeps the swarm idea going. Obviously a way to pick up capable engineering talent. If they can do sat to sat comms (I think still an area of some development to really dial in). that's going to be big for everyone - and if swarm can interoperate / get backhaul in space from starlink - amazing.
lgats 5y ago
Some details on the technology/licenses being acquired: https://fcc.report/IBFS/SAT-T-C-20210806-00096/12345289 https://fcc.report/IBFS/SAT-T-C-20210806-00096/12345289
- shantara 5y ago
  >Coincident with this filing, Swarm will be withdrawing its Petition for Market Access inthe 399.9-400.05 MHz and 400.15-401 MHz bands and concluding its remaining experimental license under the Experimental Licensing System call sign WI2XYY This is an indication that SpaceX has no intention of expanding Swarm’s business, but rather acquiring the company for its engineering talent as suggested in the other thread.
NelsonMinar 5y ago
Very curious about the price. And whether this is a hopeful acquisition to expand on what Swarm is doing, a fire sale of a company that couldn't make the financials work, or some monopolistic move to snuff out a competitor.
- keneda7 5y ago
  This. I am interested to see exactly what SpaceX does here with IP they acquire. It should be a shame if it was all mothballed.
matttrotter 5y ago
The Swarm Tile looks easily integratable into PCB designs. And, it's very low power. Although, I wonder why they need about 3 Watts power consumption when transmitting. At their low transmit frequencies (148-150 MHz), I would think they could lower that number to less than 1 Watt since the wavelengths are so long. But hey, if you deploy your sensor in a sunny location with solar panels, then why not?

93 points by caiobegotti 5y ago

I have a theory they're buying it more for the engineering talent and personnel, than any intention to run a narrow-bandwidth cubesat M2M communications network as a separate thing to starlink.

bpodgursky 5y ago
Other than the sat-to-sat communications (which starlink is also planning) is there any real difference between the product offerings? Seems like a reasonable theory.
- apendleton 5y ago
  Very different in the details. I commented above, but tldr: Starlink is suitable for high-bandwidth applications but requires a complicated, high-power antenna. Swarm is only suitable for very-low-bandwidth applications (IoT), but can get by with very simple hardware. They're not really competitors.
duskwuff 5y ago
That sounds likely. SpaceX is a lot further along in development than Swarm appears to be -- it's unlikely that they see much value in the specific technologies Swarm has developed. Interestingly, Swarm had launched some of their microsatellites on SpaceX vehicles.
marsokod 5y ago
My theory is more that they will add the functionality to Starlink. Worst case, you just plug the RF part of the swarm cubesat on the outside of a Starlink. This way Starlink immediately supports low power devices, has a ground segment for the end-users readily available, and solves the latency/backhaul problem that all these cubesat constellations have.
- dom_hutton 5y ago
  It's worth noting that it won't be as simple as plugging in Swarms' payload - there will be singificant necessary engineering work to validate the RF and power characteristics of the integration. Interesting work I'm sure.
sandworm101 5y ago
My theory: they are buying out a potential competitor, and thier IP, before they become a threat. Killing them in the cradle as it were. It sends a strong signal to anyone else talking about satellite-based network services.
- eganist 5y ago
  So they're pulling a Facebook/Instagram? Here's hoping someone with investigatory power is reading this.
- grecy 5y ago
  > they are buying out a potential competitor I think it's pretty clear SpaceX doesn't have any competitors in the satellite constellation business. SpaceX will spend something like ten billion dollars to build out the full Starlink constellation using their own launch services, which are vastly cheaper than anything anyone else has. Potential competitors would have to spend an insane amount of money to launch their constellations, which basically means it will never happen.
  - sandworm101 5y ago
    So they are in violation of antitrust rules? If space is the future, SpaceX is the railroad and should not grant cheaper rates for cargo from its other businesses.
    - toomuchtodo 5y ago
      Good luck arguing this to regulators. They are cheap, but not the only option, both in the US and globally.
    - ctdonath 5y ago
      Can argue SpaceX is a global telecom company which is selling excess transport capacity to fund their transport cost center.
    - nickik 5y ago

whoknowswhat11 5y ago

Very complementary. They are going to have synergies obviously around launch (swarm sats are relatively tiny so cost now with spaceX for launch is going to be very low). Product is also differentiated. You want global low bandwidth (primarily M2M but can also be search and rescue etc) along with the higher bandwidth / power / footprint starlink stuff. Businesses often strugle with being competed against from the bottom - I hope SpaceX keeps the swarm idea going. Obviously a way to pick up capable engineering talent. If they can do sat to sat comms (I think still an area of some development to really dial in). that's going to be big for everyone - and if swarm can interoperate / get backhaul in space from starlink - amazing.

lgats 5y ago

Some details on the technology/licenses being acquired: https://fcc.report/IBFS/SAT-T-C-20210806-00096/12345289 https://fcc.report/IBFS/SAT-T-C-20210806-00096/12345289

shantara 5y ago
>Coincident with this filing, Swarm will be withdrawing its Petition for Market Access inthe 399.9-400.05 MHz and 400.15-401 MHz bands and concluding its remaining experimental license under the Experimental Licensing System call sign WI2XYY This is an indication that SpaceX has no intention of expanding Swarm’s business, but rather acquiring the company for its engineering talent as suggested in the other thread.

NelsonMinar 5y ago

Very curious about the price. And whether this is a hopeful acquisition to expand on what Swarm is doing, a fire sale of a company that couldn't make the financials work, or some monopolistic move to snuff out a competitor.

keneda7 5y ago
This. I am interested to see exactly what SpaceX does here with IP they acquire. It should be a shame if it was all mothballed.

matttrotter 5y ago

The Swarm Tile looks easily integratable into PCB designs. And, it's very low power. Although, I wonder why they need about 3 Watts power consumption when transmitting. At their low transmit frequencies (148-150 MHz), I would think they could lower that number to less than 1 Watt since the wavelengths are so long. But hey, if you deploy your sensor in a sunny location with solar panels, then why not?