The Australian Department of Defence announced the cancellation of its JP9102 military satellite program, an estimated $5 billion project awarded to Lockheed Martin just 18 months ago, citing shifts in satellite technology and the market’s pivot toward multi-orbit space communications.
The cancellation of Australia’s JP9102 satellite program is yet another sign of the disruptive impact that low Earth orbit space internet services, led by the rapid growth of SpaceX’s Starlink, are having on the traditional satellite communications industry and government procurement models.
JP9102, or Defence Joint 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 ventures.
Lockheed Martin led an industry consortium supporting the program, including companies like Inovor Technologies, EM Solutions, and DXC.
Australia’s defense forces currently depend on commercial satellite services and the U.S. military’s Wideband Global Satcom (WGS) system. JP9102 was seen as a step toward a sovereign military satcom capability, with requirements for Lockheed Martin to partner with Australian businesses to boost local industry and expertise.
However, the rapid evolution in space technology, particularly the rise of LEO and medium Earth orbit satellite solutions that offer more flexible coverage, has made JP9102’s single orbit geostationary approach seem outdated. The Department of Defence said in a statement on Nov. 4 that the project no longer aligns with its strategic goals, which now favor multi-orbit capabilities to enhance security and resilience.
“With the acceleration in space technologies and evolving threats in space since the project’s commencement, Defence has assessed that a single orbit GEO-based satellite communications system would not meet strategic priorities,” the Australian government said. “As such, Defence has decided to cease its current procurement activity with Lockheed Martin Australia for a single orbit GEO-based satellite communications system.”
Industry group criticizes the decision
The Space Industry Association of Australia (SIAA) expressed disappointment over the decision, highlighting the setback it represents for the country’s space sector.
“Lockheed Martin and other firms have invested in preparation for the program, already creating high-tech jobs all around the country,” the SIAA said in a statement. “If the program had proceeded, this would have grown to hundreds of high-tech jobs, significant workforce upskilling, export opportunities, and hundreds of millions of dollars of contracts to Australian companies for future technology made in Australia.”
The industry group has urged 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 in a statement on Nov. 4 said the company “will continue to support the Australian government to meet its strategic needs and is proud to be partnering with the Australian Defence Force on many ongoing programs.”