Starlink prices have risen fivefold: a dispute has erupted between the Pentagon and SpaceX over ‘space-age’ tariffs

Stanislav Sereda
Stanislav Sereda Journalist
Starlink prices have risen fivefold: a dispute has erupted between the Pentagon and SpaceX over ‘space-age’ tariffs
Starlink
The US Pentagon and Elon Musk’s SpaceX have found themselves at the centre of a dispute over the sharp rise in the cost of using Starlink’s satellite internet for military purposes during the US war against Iran.

This is according to Reuters, citing its own sources.

According to the agency, after American LUCAS kamikaze drones began actively using Starlink to strike targets in Iran, SpaceX decided that the military was ‘underpaying’. Whereas previously connecting a single terminal cost around $5,000, the company now wants $25,000.

These are LUCAS drones – cheaper equivalents of Iranian ‘Shaheds’ – which can circle over a target for a long time before attacking. According to Reuters, the Pentagon initially objected to the new rates, as the drones use the connection only for short periods, rather than constantly, like aircraft.

However, in the heat of the fighting, the US eventually agreed to SpaceX’s new terms, which doubled the cost of each LUCAS drone for the US Army.

The conflict has revealed another problem: US dependence on Starlink is becoming critical, Reuters notes. In recent years, Musk’s system has become one of the key elements of modern warfare – from drone control to naval unmanned vessels and battlefield communications.

Reuters notes that SpaceX now effectively holds leverage over the Pentagon, as no other company is capable of offering such a large-scale satellite network. Around 10,000 Starlink satellites are currently in orbit – that is over 60% of all active satellites in the world.

The disputes between SpaceX and the US military have arisen not only over drones. According to Reuters, the Pentagon also discussed with the company the launch of a special Starlink service for civilians in Iran to help circumvent internet blocks. But here too, SpaceX did not come cheap – it demanded up to $500 million for the system’s launch and a further $100 million per month for its operation.

Against this backdrop, US officials began looking for alternatives to Starlink, although so far no competitor can provide similar capabilities.

As a reminder, it was previously reported that Ukraine regained 400 km² of territory after cutting off Starlink access to Russian forces.

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