Terran Orbital is a Florida-based end-to-end satellite solutions provider founded in 2013. The company has launched over 50 missions for U.S. and international customers across the military, civil, and commercial industries.
Aside from being a Star Trek superfan, what were the concrete opportunities you identified in space exploration that led you to start Terran Orbital in 2013?
In the early 90s, I started a company called Globix: The Global Internet Exchange, where we built a 25,000 mile of fiber network which spanned the globe. We encountered challenges reaching Eastern Europe, which led us to buy up satellite transponder space and build ground stations all across the region through a company we founded, NetSat Express. This was my initial foray into the space sector. Decades later, we acquired Tyvak Nano-Satellite Systems, which had invented the CubeSat, setting the standard sizes for these satellites. We transitioned from hobby-scale operations to more significant projects, eventually focusing on crafting larger satellites up to a thousand kilograms, marking a shift in our approach to space technology. The global demand for internet and 5G technologies is driving our commercial sector, with billions worldwide relying on such advancements. The new facility we are opening next year will produce over 1,000 space vehicles a year. It's a very big sea change. We have had interest from every continent except Antarctica. Many European, Middle Eastern and Asian countries want to have their own assets in space and become self-reliant.
A large portion of your clients are in the US defense sector, but you also manufacture and supply satellites for commercial customers. What does the split between military and commercial look like, and is it changing?
Currently, over 90% of our revenue stems from the Department of Defense, the intelligence community, and civil projects around the world. However, that is pivoting very quickly as the pendulum swings towards commercial ventures. We anticipate that commercial could be the majority of sales within a few years.
We’re seeing commercial constellations proliferate around the planet, everything from telephone companies to start-ups are doing 5G and exploring new ways of doing peer-to-peer connectivity. Our commercial contracts, including a recent $2.4 billion deal with Rivada Space Networks, significantly exceed our military bookings, demonstrating a fast pivot towards commercial space.
Our work extends beyond military applications, influencing our commercial ventures where we've introduced platforms like Enterprise and Voyager, designed to meet diverse global needs. That technology translates into the commercial technology portfolio which we are building out. We have just launched a family of seven new space platforms targeted towards commercial customers. The space vehicles weigh between 14 and 1,000 kilograms and feature interchangeable components and modules, and are payload agnostic. They can do communications, electro-optical, and synthetic aperture radar. The mission you choose will determine the space vehicle you use. The space vehicles are named Enterprise, Ambassador, Voyager, Renegade, Nebula, Triumph, and Excelsior. We have Middle Eastern phone companies that want us to do space vehicles and an African company that wants a space vehicle in orbit by December 2024.
Historically, producing a satellite could take up to 10 years. How have you managed to narrow providing customized satellite buses down to 30 days, and in the case of complete satellite systems, 60 days?
Our ability to expedite production lies in our control over the supply chain - if you control your supply chain, you control your destiny. By manufacturing 85% of our components in-house and consolidating production under one virtual roof, we avoid the delays typical with outsourced manufacturing. This setup allows us to swiftly adapt to global demands and emerging conflict zones such as Ukraine or Gaza, enabling rapid delivery of vital intelligence and technologies.
It’s been a challenging time for Special-Purpose Acquisition Companies (SPACs) given the high interest rates of recent years. What challenges are you currently grappling with?
Being a SPAC seemed like a good idea at the time, but it was a very bad idea and not worth the liability. The Securities and Exchange Commission changed the rules midstream making it difficult to access capital. Also, the industry needs more investment. SpaceX for example is a 19-year-old private company that has raised and lost billions of dollars but they revolutionized orbit access. The problem is that they require space vehicles with payloads to launch. We build space vehicles, they launch them - it’s a perfect marriage.
Technology challenges are consistent across continents; however, socio-economic contexts vary. In developed regions, adoption barriers are relatively low due to higher disposable incomes and existing infrastructure. In developing areas, challenges are more about affordability and the deployment of infrastructure. Yet, access to communications and the internet can be profoundly empowering, opening up opportunities for transformative economic development and social advancement.
What do you expect the commercial space industry to look like in 5-10 years?
In the United States alone, there are applications for over 50,000 satellites pending with the Federal Communications Commission (FCC). With 190 countries in the International Telecommunication Union (ITU), every nation has extensive satellite ambitions. The orbital space is expected to become exceedingly crowded. Technological advancements are significant, as evidenced by our collaboration with NASA and MIT's Lincoln Laboratories on the Pathfinder satellite, which achieved internet connection speeds up to 200 gigabits per second and a data offload of 4.8 terabytes in a mere five-minute downlink. This is a world record. Soon, satellite internet could surpass terrestrial broadband in speed and efficiency.
