WASHINGTON – The Australian Department of Defense has announced the cancellation of its military satellite program JP9102, a $7 billion project awarded to Lockheed Martin just 18 months agociting changes in satellite technology and the market’s pivot to multi-orbit space communications.

Cancellation of Australia Satellite program JP9102 is yet another sign of the disruptive impact that space internet services in low Earth orbit, led by the rapid growth of SpaceX’s Starlink, are having on the traditional satellite communications industry and public procurement models.

JP9102, or Joint Defense Project 9102, was launched in 2021 with plans to develop between three to five geostationary satellites and ground systems, marking one of Australia’s most ambitious space infrastructure projects.

Lockheed Martin led an industrial consortium supporting the program, including companies such as Inovor Technologies, EM Solutions and DXC.

Australia’s defense forces currently depend on commercial satellite services and the US military’s Wideband Global Satcom (WGS) system. JP9102 was seen as a step towards a sovereign military satellite communications capability, with requirements for Lockheed Martin to work with Australian companies to boost local industry and expertise.

However, the rapid development in space technology, especially the growth of LEO and the mean orbit of the Earth satellite solutions that offer more flexible coverage, has made JP9102’s single-orbit geostationary approach seem obsolete. The Defense Department said in a Nov. 4 statement that the project no longer aligns with its strategic goals, which now favor multi-orbit capabilities to enhance security and resilience.

“With accelerating space technologies and evolving threats in space since the project’s inception, Defense assessed that a satellite communications system based on a single GEO orbit would not meet strategic priorities,” the Australian government said. “As such, Defense has decided to terminate its current procurement activity with Lockheed Martin Australia for a single GEO orbit satellite communications system.”

The industry group criticizes the decision

The Space Industry Association of Australia (SIAA) expressed its disappointment at the decision, highlighting the setback it represents for the country’s space sector.

“Lockheed Martin and other firms have invested in program preparation, already creating high-tech jobs across the country,” SIAA said in a statement. “Had the program gone ahead, it would have grown to hundreds of high-tech jobs, significant workforce enhancements, export opportunities and hundreds of millions of dollars in contracts with Australian companies for future Australian-made technology.”

The industry group called on the government to build Australia’s presence in space capabilities, warning that Australia risks remaining a “consumer of space services” instead of a “contributor” capable of providing critical defense technologies.

Lockheed Martin has not yet commented on the implications of the cancellation. The company described JP9102 as a project critical to both national security and the development of the country’s defense technology base.

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