Rocket Lab CEO Won’t Take on Musk and Bezos in Broadband: ‘The Two Most Wealthiest People in the World Are Going After That’

Ananya Gairola

Wed, August 12, 2026 at 10:31 PM GMT+3 5 min read

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On Monday, Rocket Lab Corp. CEO Peter Beck said the company's planned $8 billion acquisition of Iridium Communications Inc. is opening a new space-services opportunity — one that largely steers clear of the consumer broadband market dominated by Space Exploration Technologies Corp CEO Elon Musk's Starlink and Jeff Bezos' Amazon.com Inc. Leo.

Rocket Lab Is Taking a Different Route From Starlink

Speaking during Rocket Lab's second-quarter earnings call, Beck was asked whether Iridium's network could eventually be expanded into broadband services.

His answer was cautious but revealing.

"It is the wrong kind of spectrum for broadband," Beck said, referring to Iridium's L-band spectrum. "I've learned to never say never."

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Beck then pointed to Musk and Bezos, saying competing in broadband would be a significant challenge because "the two most wealthiest people in the world are going after that."

Rather than enter the increasingly crowded satellite broadband market, Rocket Lab sees opportunities in areas where Iridium's spectrum offers different advantages.

Iridium Deal Gives Rocket Lab More Than Satellites

Rocket Lab announced in June that it agreed to acquire Iridium in a cash-and-stock deal valued at approximately $8 billion. The transaction is expected to close in mid-2027, subject to regulatory and shareholder approvals.

The acquisition would give Rocket Lab access to Iridium's 66-satellite constellation, more than 2.5 million subscribers and globally coordinated L-band spectrum.

Beck described the deal as the missing piece in Rocket Lab's strategy to control the space value chain — from launching rockets and manufacturing spacecraft to operating satellites and selling services.

Rocket Lab Wants IoT, Defense and PNT

During the call, Beck also said the company plans to expand Iridium into satellite IoT, direct-to-device connectivity, positioning, navigation and timing, defense, aviation and maritime safety.

"We will not simply continue Iridium's network," Beck said. "We will expand upon it and scale it into untapped markets."

The strategy could also enable Rocket Lab to build and launch its own spacecraft for Iridium, reducing its reliance on external providers.

Rocket Lab Q2 Revenue Beats Estimates

Rocket Lab reported second-quarter revenue of $234.07 million, topping the consensus estimate of $231.35 million.

However, the company posted a loss of 8 cents per share, slightly wider than analysts' expected loss of 7 cents per share. The company ended the quarter with a record backlog of $2.36 billion and approximately $2.13 billion in cash and cash equivalents.

For the third quarter, Rocket Lab expects revenue between $250 million and $265 million, above analysts' estimate of $238.53 million. The company also projects an adjusted EBITDA loss of $17 million to $23 million for the quarter.

Photo courtesy: Shutterstock

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