ULA's Strategic Move in the Low Earth Orbit Market

United Launch Alliance (ULA), a joint venture between Boeing and Lockheed Martin, is planning to upgrade its Vulcan rocket to rival SpaceX's Starship in the low Earth orbit (LEO) satellite launch market, according to ULA CEO Tory Bruno.

The decision to develop a Vulcan model tailored for the LEO market comes as SpaceX continues to launch thousands of satellites for its Starlink Internet service. Bruno revealed that ULA has recently completed a trade study to determine the necessary modifications to make Vulcan competitive in the future LEO market.

Among the options considered, Bruno mentioned a "Vulcan Heavy," which would involve three Vulcan core boosters strapped together, and other unique configurations featuring propulsion in unusual places. This strategic move aims to match the capabilities of SpaceX's Starship, which is primarily designed for crewed missions to the moon and Mars but is also planned to accelerate Starlink satellite deployments.

ULA expects to finalize the development of the Vulcan variant by the time SpaceX's Starship begins offering LEO satellite launches, which Bruno estimates could be several years away. The competition in the satellite launch market is intensifying as companies like Amazon scramble to build competing satellite networks, driving demand for large launchers.

With several Vulcan missions already booked with Amazon for its Kuiper internet satellites, ULA's Vulcan rocket is set to play a crucial role in Amazon's strategy to challenge Starlink. ULA is also aiming to fly eight Vulcan missions next year and 12 missions with Atlas V, Vulcan's retiring predecessor. The Vulcan rocket starts at a launch price of roughly $110 million, slightly over the base price of a SpaceX Falcon 9, making it a competitive option in the market.