FCC Fines Swarm $900K For Unauthorized Sat Launch

Swarm Technologies wants to launch dozens of satellites into low earth orbit to provide Internet service

Swarm Technologies Inc. learned an expensive lesson this week: If you’re going to shoot satellites into space, make sure the government signs off first.

According to The LATimes, the Menlo Park, Calif., company has agreed to pay a $900,000 fine to the Federal Communications Commission, the regulatory agency said Thursday. The FCC had denied Swarm’s request for permission to launch four tiny satellites, but the company went ahead with the launch anyway in January.

The fine sends a message to other firms in the burgeoning small-satellite industry that they need to play by the rules, analysts said. Space is a different game from the tech industry, in which companies have sometimes launched services first and asked for permission later.

Unauthorized satellites increase the risk of collisions and radio frequency interference, “threatening critical commercial and government satellite operations,” the FCC said in a statement. Swarm “admitted to the unauthorized launch and operation only after the commission discovered it,” the agency said.

In addition to the fine, Swarm also agreed to a five-year compliance plan requiring it to adopt internal programs to help ensure it follows federal rules.

Like many small-satellite manufacturers, Swarm is trying to ride the wave of cheaper manufacturing costs and smaller, more powerful electronics. Last year, 335 small satellites were launched worldwide, up from about 120 in 2016, according to data from market research firm Bryce Space and Technology.

Companies such as SpaceX and OneWeb have proposed constellations of hundreds or thousands of small satellites, and analysts have predicted that thousands of satellites could be launched in the next few years.

Like many other companies in the growing small-satellite industry, Swarm plans to use its technology for jobs such as Earth imaging or providing broadband internet. The satellites it launched without permission — called SpaceBees — measured about 4 inches long, 4 inches wide and 4 inches tall.