SpaceX is one of the earliest and most dominant players in low Earth orbit, a massive presence that also comes with growing risks.

The end of the year has been particularly difficult for SpaceX. The company, led by Elon Musk for more than two decades, found itself under pressure after a satellite from its Starlink constellation, which delivers global internet access, suddenly exploded in late December.

While SpaceX initially tried to downplay the event, repeatedly calling it a “minor issue,” the fallout has proven to be anything but minor. The consequences were outlined by Michael Nicolls on social media. On January 2, the SpaceX vice president in charge of engineering issued a clear and direct statement.

A total of 4,400 Starlink satellites are set to change altitude. Currently operating at around 550 kilometers above Earth, they will be lowered to roughly 480 kilometers in the coming weeks. This 70-kilometer descent reflects a growing concern SpaceX can no longer ignore: overcrowding in orbital space.

Reducing risks

By moving closer to Earth, Starlink satellites free up a strategically important orbital layer. More specifically, this maneuver helps ease congestion in the narrow band between 550 and 650 kilometers above the planet, an area that has seen a surge in launches in recent years.

For Michael Nicolls and SpaceX, the objective is clear: reduce the risk of another incident. With just two explosions out of more than 9,000 satellites launched so far, the events of late 2025 stand out as an unwelcome anomaly in the company’s otherwise tightly managed schedule.

China implicitly in the spotlight

Without explicitly naming it, China appears to be at the center of concerns at Boca Chica, SpaceX’s operational hub. Chinese private companies have been criticized for launching satellites without adequately coordinating with U.S. counterparts.

Only weeks ago, two spacecraft narrowly avoided a collision, passing within just a few meters of each other in orbit. The situation was widely seen as unacceptable. While Michael Nicolls had openly condemned such practices on social media at the time, his early January remarks were more measured. He stated that the orbital shift would improve the safety of the Starlink constellation, “particularly in the face of risks such as uncoordinated maneuvers and launches by other satellite operators.”

Starlink: a monopoly for now

Even as SpaceX voices concerns about the accelerating space race, it remains one of its primary drivers. With nearly 10,000 Starlink satellites orbiting Earth daily, the company has reshaped the orbital environment. More importantly, the success of satellite-based internet has encouraged other players to follow suit.

Europe aims to deploy its own constellation to secure sovereignty over telecommunications, at least within its borders. China is developing its own system rather than relying on Starlink. Russia, facing vast territory and costly ground infrastructure, is closely monitoring operational constellations and could eventually partner with China on a shared service.

All of these initiatives require hundreds or even thousands of satellites, dramatically increasing the likelihood of a collision. Should such an event occur, it could trigger a cascading chain reaction, scattering debris through space and threatening every satellite along the same orbital path.

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