Elon Musk revealed that Starlink has just crossed the remarkable milestone of building more than one million Starlink terminals, SpaceX’s project to provide broadband access via satellites floating in low earth orbit (LEO). Elon Musk’s news comes at a time when the company is facing challenges as part of his ambition to dominate the entire satellite Internet industry, with his expansion plans clashing with government contracting issues and headaches surrounding funding.
SpaceX recently received approval from the Federal Communications Commission (FCC) to deploy no fewer than 40,000 satellites in orbit – far more than existing competitors like OneWeb and cash-rich newcomers like the Jeff Bezos-backed Kuiper project, which have yet to make their mark on the industry. The initial plan, which began back in 2015, was to inject some 4,000 Internet delivery satellites into orbit, with the first two Starlink test satellites – dubbed TinTin A and TinTin B – launching in 2018. Commercial deployment was soon followed by 60 Starlink satellites launched via SpaceX’s own Falcon 9 rocket in 2019.
But it wasn’t until November 2021 that Starlink finally emerged from its testing phase, which coincided with a global semiconductor shortage that slowed the service’s expansion. The service is reportedly available in two tiers – standard and high performance – with an initial setup cost of $599 and an additional $110 monthly fee for Internet access. But SpaceX and Starlink’s journey has been far from smooth.
A challenging journey
The FCC initially approved SpaceX’s proposal to deploy one million satellite Internet terminals in the United States in March 2020. That same year, SpaceX asked the agency to extend the licensing limits so that Starlink could expand to serve 5 million customers in the United States. But high costs remain an obstacle from an accessibility standpoint, and, of course, Starlink requires clear skies, which could lead to patchy connections in areas that often face extreme weather. Overheating has also been highlighted as a lingering issue over the years as SpaceX has iterated on its terminal design.
The process was costly, but also very important. spaceX’s initial design actually ended up costing the company considerably more than it could sell for. In addition to the larger costs from the high-performance services tier, SpaceX has been seeking new government funding. Although shortlisted for a U.S. contract worth about $886 million to provide Internet service to rural areas, the FCC rejected the proposal out of concern that Starlink would not truly achieve what SpaceX had promised.
In rejecting the proposal, the FCC categorized Starlink as a technology still in the development stage and concluded that the company could not deliver on its promise to provide reliable, high-speed Internet during testing. SpaceX has since secured the support of FCC Commissioner Brendan Carr in an expensive rejection. On the other hand, there has been an outcry from the astronomical community, which says the growing Starlink constellation increases the risk of collisions and obscures the satellite’s field of view – both in the visible and radio regions. In addition, hackers are now increasingly seeing Starlink as a target, and space debris concerns are on the rise.
Ambition Beyond Barriers
Despite these problems, neither Elon Musk nor SpaceX has lowered their ambitions for the system. Starlink may have started out as a rooftop installation, but in July of this year, the company received regulatory approval for its Starlink terminals to be installed on moving cars, ships and aircraft. A week after receiving permission, SpaceX announced Starlink Maritime, a new service package aimed at customers ranging from merchant ships to oil rigs to premium yachts.
The price for Starlink’s maritime Internet service is set at $5,000 per month, while the equipment itself costs an additional $10,000. While this may sound excessive, Starlink Maritime’s service is actually quite competitive compared to older rivals like Sea Tel and Iridium Go. By the end of the first quarter of 2023, Starlink Maritime aims to go global and have Internet service available wherever it sails.
Back on land, Starlink recently confirmed a partnership with T-Mobile that will provide limited satellite connectivity to phones that normally use the Magenta carrier’s network, with the goal of helping users respond to emergencies when they are in remote areas without coverage. Arguably the most exciting part is that the satellite connection will be offered for free, rather than the expensive subscription fees one sees charged by traditional satellite phone providers. SpaceX even plans to offer Starlink’s Internet connection on school buses with routes longer than 60 minutes, in rural areas where students don’t always have access to fast broadband Internet service at home.
