SpaceX CEO Elon Musk said on Sunday local time that the cost of the Starlink Internet satellite antenna is “dropping rapidly”. He also made a point of emphasizing that this is the case, at least for now.
Musk’s comments were in response to a tweet. The tweet said that SpaceX’s satellite antennas are selling for “well below cost.
Musk responded on Twitter, saying, “Just for now. Costs are dropping rapidly.”
Through the Starlink project, Musk plans to launch thousands of Internet satellites to provide Internet service around the world, especially to remote areas where “access to the Internet is often a challenge.
So far, Starlink is providing initial test services in some areas and plans to “continue to expand to cover the global population in 2021.”
According to SpaceX’s website, the initial installation price of the Starlink satellite antenna is $499, but the monthly WiFi service fee is $99.
However, according to multiple reports extrapolating, the satellite dish cost about $1,500 to manufacture.
Considering this, SpaceX has to lose $500 for each set of satellite dishes sold.
In February, Musk said on Twitter that “SpaceX needs to get over the deep hole of negative cash flow” to make it “financially viable.
SpaceX is one of several companies seeking to provide high-speed, reliable Internet service around the world. Other companies include Amazon, led by Jeff Bezos, and OneWeb.
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