SpaceX has announced that it has improved its production of Starlink satellite kits, allowing them to be sold without incurring losses. Jonathan Hofeller, SpaceX’s vice president of Starlink and commercial sales, made this statement at a panel during the World Satellite Business Week conference. This development marks a significant step towards profitability for SpaceX’s Starlink internet service.
In the past, SpaceX has been willing to operate at a loss to build out its Starlink service, investing heavily to establish its global internet coverage. However, with the recent progress in terminal production, the company is no longer subsidizing terminals, signaling a positive turning point.
SpaceX has been making remarkable strides in expanding its Starlink satellite network. The most recent launch successfully deployed over 5,000 Starlink satellites into space. The company’s ambitions extend even further, with authorization in place to launch an additional 12,000 satellites, and pending permission for another 30,000. This substantial satellite constellation aims to offer high-speed, low-latency internet service worldwide, with shorter round-trip data times and improved speed compared to traditional satellite systems.
The growing number of Starlink satellites serves to address the lack of high-speed internet options in many areas, particularly for households that would otherwise have limited access. Currently, Starlink is not widely available, and there is a years-long waitlist, according to Satellite Internet. In May, Starlink introduced new plans offering fast internet speeds at higher price points, ranging from $250 to $5,000 per month, along with a one-time equipment fee of $2,500. The Starlink kit includes a dish, power supply, wall mount, Wi-Fi router, cables, and a base.
As SpaceX continues to refine its production and expand its satellite network, the goal of providing high-speed internet access to underserved regions and remote areas becomes more attainable. By eliminating losses on the sale of Starlink satellite kits, SpaceX positions itself for financial success as its Starlink service matures.