Elon Musk's Starlink Set To Benefit From FCC's Satellite Power Limit Update—Could Get 'Seven-Fold' Increase In Capacity

SpaceX's Starlink could see capacity rise as much as seven-fold under new Federal Communications Commission (FCC) rules approved this week, a regulatory shift aimed at improving satellite internet speed, reliability and costs.

FCC Updates Decades-Old Satellite Sharing Rules

The FCC voted Thursday to modernize satellite spectrum-sharing rules, replacing 1990s-era limits that restricted newer non-geostationary systems such as Starlink. The agency said the new performance-based framework accounts for modern technologies, including adaptive coding and modulation, and could allow space-based broadband providers to deliver up to seven times more capacity.

“This change could also unlock more than $2 billion in economic benefits for the American people and up to seven-fold more capacity for space-based broadband services,” said the agency in a press release.

We're please to see overwhelming support for this @FCC action lead by @BrendanCarrFCC https://t.co/N0AsVu3wNl pic.twitter.com/5B08ssRRHs

— Katie McAuliffe (@KatieFCC) April 30, 2026

The agency first outlined the measure in early April, saying it would allow "greater and more intensive use" of wireless spectrum for space activities.

SpaceX Rivals Warn Of Interference Risks

SpaceX petitioned the FCC for the changes in August 2024 and told the agency last month that existing restrictions "significantly overly restrict next-generation satellite systems." But rivals Viasat Inc. (NASDAQ:VSAT) and DirecTV objected, warning that higher power levels could increase interference with their satellites.

The approval adds to SpaceX's recent regulatory momentum. In January, the FCC allowed the company to deploy another 7,500 second-generation Starlink satellites, saying they could support direct-to-cell connectivity outside the United States, supplemental U.S. coverage and internet speeds of up to 1 gigabit per second.

Starlink Remains Central To SpaceX Valuation

The win comes as SpaceX works through delays around Starship V3, the rocket system expected to carry larger, next-generation Starlink satellites. SpaceX has said Starship will begin deploying more powerful V3 Starlink satellites, with each launch adding more than 20 times the capacity of current satellites, but hardware bottlenecks remain part of the vehicle's development path.

Starlink remains central to SpaceX's business case. Reuters reported this month that Starlink generated about 65% of SpaceX's 2025 revenue, justifying investor interest as the company targets a possible $1.75 trillion valuation in what could become the largest IPO in history.

Blue Owl Capital Inc.’s (NYSE:OWL) recent sale of part of its stake in SpaceX at a $1.25 trillion valuation added another marker of investor demand.

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