Space Regulation: The Next Telecom Frontier and Geopolitical Implications

Web Editor

September 30, 2025

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Introduction to Low Earth Orbit (LEO) Satellites

The telecommunications industry is witnessing the rapid expansion of Low Earth Orbit (LEO) satellite constellations, such as SpaceX’s Starlink. These satellites operate between 500 and 2,000 kilometers above the Earth’s surface, making them more viable for providing high-speed internet and wide coverage compared to geostationary satellites located up to 36,000 kilometers away.

According to Fortune Business Insights, the LEO satellite industry is projected to be worth $7.93 billion in 2025 and $11.53 billion by 2032. However, for the Brazilian regulator Anatel, the news is quite different.

Anatel’s Perspective on LEO Satellites

During his presentation at the Futurecom telecom technologies fair in São Paulo, Alexandre Freire, a commissioner at Anatel, expressed concerns that the rapid deployment of LEO satellite constellations will soon necessitate an update to Brazil’s regulatory framework.

Freire emphasized the importance of Brazil expanding its partnerships and not relying on a single state-level entity for data transfer, as this would also introduce geopolitical considerations into satellite regulation.

“The satellite expansion, even to support new technologies like Starlink, necessarily requires updating the corresponding regulations… Brazil must be very aware of the need to broaden alliances and not have a single state-level actor as the data transfer agent,” Freire stated during one of Futurecom’s conferences.

While acknowledging the technical suitability of LEO constellations for democratizing internet access, Freire noted that their emergence has disrupted the telecommunications ecosystem and now challenges existing regulatory frameworks. Consequently, any discussions on the topic should also address geopolitical perspectives.

“These constellation networks are challenging international governance, national regulation, and even the very notion of digital sovereignty,” explained Freire.

To address this, Freire suggested considering other significant players in the satellite industry to create a balance. He mentioned India and Russia as potential allies, given Brazil’s existing partnerships within the BRICS group.

Anatel’s Progress on Satellite Regulation

Anatel has already begun addressing these issues. For instance, in April, while approving an expansion for Starlink’s satellite constellation, Anatel also hinted at adjustments to satellite regulations in response to new requests for creating additional LEO constellations with reach in Brazil.

Freire posed the question, “Are we ready to regulate space? Are we prepared for spatial regulation?” stating that this will be “the historic regulatory topic of the coming years.”

The discussion should extend across all levels of government, as it’s not merely a telecommunications issue. Just like submarine cables in the ocean, satellites also carry economic, defense, and personal data, all of which represent power that a state can leverage for its benefit.

“This entire matter has been discussed within Anatel, the Institutional Security Directorate, the Ministry of Communications, and the Ministry of Defense because it’s a matter of state, not just Anatel… Brazil must be very aware: We are talking about digital sovereignty, data protection; the need for Brazilian data storage and the necessity to protect strategic data,” Freire elaborated.

Key Questions and Answers

  • What are Low Earth Orbit (LEO) satellites? LEO satellites operate between 500 and 2,000 kilometers above the Earth’s surface, making them more suitable for providing high-speed internet and wide coverage compared to geostationary satellites.
  • Why is Anatel concerned about LEO satellites? Anatel’s commissioner, Alexandre Freire, believes that the rapid deployment of LEO satellite constellations will necessitate an update to Brazil’s regulatory framework and emphasizes the importance of expanding partnerships to avoid relying on a single state-level entity for data transfer.
  • What geopolitical implications do LEO satellites have? Freire suggests that the emergence of LEO constellations challenges international governance, national regulation, and digital sovereignty. He proposes considering other significant players in the satellite industry, like India and Russia, to create balance.
  • What is Anatel’s progress on satellite regulation? Anatel has begun addressing these issues by hinting at adjustments to satellite regulations in response to new requests for creating additional LEO constellations with reach in Brazil.
  • Why is spatial regulation important? Spatial regulation is crucial as satellites carry economic, defense, and personal data, representing power that a state can leverage for its benefit. This matter has been discussed across various government levels, including Anatel, the Institutional Security Directorate, the Ministry of Communications, and the Ministry of Defense.