China Launches First Satellites of Constellation to Rival Starlink 

The Long March-2F Y13 rocket, carrying the Shenzhou-13 spacecraft and three astronauts in China's second crewed mission to build its own space station, launches at Jiuquan Satellite Launch Center near Jiuquan, Gansu province, China October 16, 2021. (Reuters)
The Long March-2F Y13 rocket, carrying the Shenzhou-13 spacecraft and three astronauts in China's second crewed mission to build its own space station, launches at Jiuquan Satellite Launch Center near Jiuquan, Gansu province, China October 16, 2021. (Reuters)
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China Launches First Satellites of Constellation to Rival Starlink 

The Long March-2F Y13 rocket, carrying the Shenzhou-13 spacecraft and three astronauts in China's second crewed mission to build its own space station, launches at Jiuquan Satellite Launch Center near Jiuquan, Gansu province, China October 16, 2021. (Reuters)
The Long March-2F Y13 rocket, carrying the Shenzhou-13 spacecraft and three astronauts in China's second crewed mission to build its own space station, launches at Jiuquan Satellite Launch Center near Jiuquan, Gansu province, China October 16, 2021. (Reuters)

A Chinese state-owned enterprise on Monday launched the first batch of satellites for a mega-constellation designed to rival US company Space X's Starlink's near-global internet network, a state-backed newspaper reported.

The launch marks an important step in Beijing's strategic goal of creating its own version of Starlink, a growing commercial broadband constellation that has about 5,500 satellites in space and is used by consumers, companies and government agencies.

The competition to occupy Earth's lower orbits also has military implications, with the potential to affect the balance of power between warring countries.

The launch, led by Shanghai Spacecom Satellite Technology (SSST), took place at Taiyuan Satellite Launch Centre, one of China's main satellite and missile launch centers, located in the northern province of Shanxi, the China Securities Journal reported.

The launch is part of SSST's "Thousand Sails Constellation" plan, also known as the "G60 Starlink Plan", which began last year and aims to deploy more than 15,000 low Earth orbit (LEO) satellites.

LEO satellites usually operate at altitudes of 300km to 2,000km from the Earth's surface and have the advantage of being cheaper and providing more efficient transmission than satellites at higher orbits.

Starlink, operated by billionaire Elon Musk, has tens of thousands of users in the United States so far and plans to add tens of thousands more satellites to its system, the largest of its kind.

Chinese researchers in the People's Liberation Army (PLA) have over the past two years studied the deployment of Starlink in the war in Ukraine and repeatedly warned about the risks it poses to China, should the country find itself in a military conflict with the United States.

In January, an op-ed published in a PLA mouthpiece described the deployment of Starlink as a "serious threat to the security of space assets of various countries."

SSST's "Thousand Sails constellation" is one of three "ten-thousand star constellation" plans China is hoping will allow it to close the gap with SpaceX.

SSST's plan is to launch 108 satellites this year, 648 satellites by the end of 2025, provide a "global network coverage" by 2027, and get to 15,000 satellites deployed before 2030.

SSST did not immediately respond to a request for comment on the report.



Pinterest Plunges as Gloomy Forecast Dampens Revenue Rebound Hopes

Image sharing company Pinterest Inc beat Wall Street estimates for second-quarter revenue. (AFP)
Image sharing company Pinterest Inc beat Wall Street estimates for second-quarter revenue. (AFP)
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Pinterest Plunges as Gloomy Forecast Dampens Revenue Rebound Hopes

Image sharing company Pinterest Inc beat Wall Street estimates for second-quarter revenue. (AFP)
Image sharing company Pinterest Inc beat Wall Street estimates for second-quarter revenue. (AFP)

Pinterest shares tumbled more than 12% premarket on Wednesday after a muted third-quarter outlook dashed Wall Street's expectations for a stabilization in its revenues amid a rebound in the digital ad market.

The photo-sharing platform on Tuesday projected current-quarter revenue below analysts' estimates, as it struggles to keep up with the competition from bigger rivals including Meta's Instagram and Facebook and Alphabet .

The digital advertising market is bouncing back from a slump seen in 2022 and early 2023, but pockets of weakness remain and are eating into business at Pinterest, Reuters reported.

San Francisco, California-based Pinterest flagged material weakness in demand from advertisers in the consumer goods space, particularly food and beverage companies, which offset strength in ad spend in the technology and financial services sectors.

"The optics of a lighter (third quarter) guide will not help recently growing ad fears, and some will be concerned that food & beverage pressure — which has been isolated — could spread to other verticals with a potentially softer consumer," J.P. Morgan analyst Doug Anmuth said in a note.

Pinterest's outlook could also spell trouble for other smaller ad players such as SnapChat owner Snap and ad tech firm Trade Desk, analysts said, noting 18% of the gross spend at Trade Desk last year came from food and beverage firms.

Shares of Snap dipped more than 2% premarket on Wednesday, with Trade Desk down 1.5%. Pinterest is set to lose about $2.8 billion in market value, if losses hold.

Pinterest could take yet another hit from the lack of political ads on its platform, unlike Meta and Alphabet which are set to benefit from political advertising in the run-up to the U.S. elections.

"Pinterest... gets no benefit from momentum others will get starting end of August/early September," RBC analysts said, noting that could be a "few hundred" basis points of a headwind for Pinterest.

At least 11 brokerages cut their price targets on Pinterest.