Elon Musk’s Starlink network of internet satellites would require up to $30 billion in investment to stay afloat, according to the entrepreneur.
According to Reuters, SpaceX CEO Elon Musk stated the projected expenses for Starlink’s operation are between $20 billion and $30 billion while speaking via video link at the Barcelona Mobile World Congress telecommunications conference.
During the same press conference, Musk said that the firm was losing money on its Starlink terminals, which allow consumers to get internet from satellites already in space.
The terminals cost $1,000 to produce, according to Musk, and the business sells them for $500 plus a $99 monthly membership. According to him, the firm will soon unveil a new model of its terminal that will be less expensive to produce.
Musk also revealed that Starlink had partnered with two “big national telecoms,” but did not identify them. Last Monday, Musk said that Starlink has 69,420 users.
According to Reuters, Musk stated, “If we succeed in not going bankrupt, then that’ll be wonderful, and we can go on from there.” Musk has previously stated that the main issue facing any high-speed internet satellite firm is avoiding bankruptcy.
SpaceX, Musk’s space exploration firm, owns Starlink. Its goal is to use a fleet of satellites to deliver high-speed internet to distant regions of the globe. According to Space News, there were almost 1,500 satellites in orbit as of May 2021. Musk has stated that he plans to launch 42,000 satellites in all.
Gwynne Shotwell, SpaceX’s president, stated earlier this month that Starlink may give worldwide coverage by September 2021, however, Musk suggested at Tuesday’s conference that this might happen a month sooner, in August.