Laser Starcom (极光星通): A breakthrough for optical intersatellite communications?

A Chinese commercial aerospace firm exemplifies how state and private capital, science and industry are working together to spur breakthroughs in satellite communications. In August, Beijing-based Laser Starcom, which develops terminals for space-based laser communications, raised an undisclosed amount from a venture capital (VC) fund controlled by China’s state-owned Development Bank. Earlier this year, the company made headlines for transmitting data between two satellites at 400 gigabits  (Gbps) per second using lasers, twice the current capacity of Starlink. The test ran for six minutes and 44 seconds.

Laser Starcom was founded in 2020 by Wu Shaojun (吴少俊), a veteran space engineer who previously led the Technology and Engineering Center for Space Utilization in the Electronic Information Technology Research Office of the Chinese Academy of Sciences (CAS). Due to his prominence and contacts from his contributions to China’s strategic national space programs, Wu’s company received backing from professional deep tech investors like CAS Star and Shunwei Capital, and it has recruited industry experts from CAS, Huawei, ZTE, and aerospace conglomerates.  

A fan of Elon Musk, Wu wants to use laser beams to carry data between satellites and between space and ground, reducing the need for ground stations. The company is now eying mass manufacturing (400 units per year) of its laser communication terminals to meet growing market demand, as Chinese satellite internet firms are in a race to compete with Musk’s Starlink. Laser Starcom previously managed to establish a stable communication of more than one hour between two distant satellites. 

Laser-based satellite communication offers several advantages compared to transmissions over radio waves, especially increased bandwidth. Starcom’s approach in this regard promises better cost control, an issue that has so far hampered rolling out a competitive Chinese alternative for satellite broadband. Even so, China’s progress at launching satellite internet constellations will also hinge on other factors, especially whether the country can manage to produce a reusable rocket to ensure more frequent and less costly launches.