Pentagon to Invest $1.8 Billion in Satellites for Internet

Publically traded Aerospace giants Lockheed Martin and Northrop Grumman will share $1.8 billion in contracts for a satellite-based military communications network together with private together with York Space.

Mirroring efforts such as Elon Musk’s Starlink the Pentagon is aiming to create its own mesh network of low-orbit satellites. The first contracts for these satellites were awarded in 2020 to Lockheed and York for 10 satellites each to be launched later in 2022.

The contracts announced on Monday are for 126 satellites which will comprise the Pentagon’s Space Development Agency’s Transport Layer Tranch 1. Each company will build 42 of the satellites, though Lockheed martin won $700 million worth of contracts, Northrop Grumman $692 million and York $382 million.

The Transport Layer network is an effort by the Pentagon to build a satellite-based internet system. The contracts for Tranch 1 require delivery in 2024.