When thinking about operating a satellite in GEO, is it better to rent or buy?
Until now, rental satellites weren’t widely available. A pending deal between Space Leasing International (SLI) and AscendArc stands to open the door for more operators to pay as they go in GEO.
This week, SLI, a subsidiary of the Libra Group conglomerate, signed an initial agreement with AscendArc to purchase two small GEO satellites with a combined value of $200M+. The deal is expected to close in the next three months, and the satellites could fly as early as late 2028.
The rental economy: SLI was established in 2023 with the goal of lowering the financial barriers to space by allowing customers to access expensive space assets without overextending their pocketbooks.
Thus far, SLI has focused mainly on ground stations. It has purchased 13 across the world, including 10 from Microsoft in March, which it then leased out to RBC Signals.
SLI’s business model is similar to any other rental service, in that SLI finances assets too dear for others to purchase themselves. SLI is betting on its ability to connect cost-conscious satellite operators with the uniquely low-cost offering provided by AscendArc’s technology.
“[AscendArc] meaningfully improves the economics and throughput performance in GEO, delivering a cost per Mbps that stands out and aligns well with what operators are asking for,” SLI CEO Praveen Vetrivel said in a statement. “We expect operators to appreciate both the performance profile and the ability to access this technology through leasing terms that allows them to grow in a capital-efficient way.”
Cost conscious: For AscendArc, the deal means more than just the sale of two satellites. AscendArc’s company vision revolves around providing competitive pricing to GEO satellite operators. The company achieves comparatively lower costs by building satellites that are significantly smaller than alternatives, which can often exceed multiple tons.
With the SLI deal, AscendArc aims to prove the value of its satellites to a broader range of customers that couldn’t otherwise afford to fly in GEO.
