Elon Musk’s Starlink network, which provides fast internet service through a network of 4,500 satellites in low-earth orbit, has inspired other companies to enter the market. One such company is Rivada Space Networks, the German subsidiary of Rivada Networks. Unlike its competitors, Rivada Space Networks lacks the financial resources and technical expertise typically required for such an endeavor.
Founded nearly two decades ago, Rivada Networks has struggled to create a successful telecommunications network despite raising millions of dollars from investors. Its strategy involves partnering with former Republican political officials to appeal to the government for lucrative contracts. However, previous attempts to secure a government contract, such as building a 5G network, have failed.
In March 2022, Rivada Space Networks was established to focus on satellite operations. Since then, it has secured spectrum rights from a Liechtenstein company controlled by Chinese investors and convinced the International Telecommunications Union to waive deployment deadlines. The company has also signed a $2.4 billion contract with Terran Orbital Corporation to build satellites for a super-fast network. Additionally, a contract with SpaceX has been signed to launch 300 satellites starting in early 2025.
Despite these achievements, Rivada Space Networks has faced financial difficulties and legal action. The company has defaulted on loans, faced lawsuits, and struggled to make payments to vendors. Its CFO revealed in a deposition that the company had only $3,000 in the bank and had not received any revenue since 2015.
With a lack of government contracts and financial troubles, Rivada Space Networks is relying on its ambitious satellite network plan to turn things around. However, the company’s ability to raise the necessary funds and succeed in the satellite market remains uncertain, particularly given its limited track record. While its politically-connected board members may assist with navigating bureaucratic hurdles, the challenge of remaining solvent and successfully building and operating hundreds of satellites is significant.
