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If all the constellation + GEO systems proposals end up being launched, there will be an oversupply of capacity from space. Rural areas are a viable market onl

If all the constellation + GEO systems proposals end up being launched, there will be an oversupply of capacity from space. Rural areas are a viable market only in the US and Canada, where people can afford to pay $50+/month for connectivity. Elsewhere in the world, they are not going to sell to any end-users. The 4,425 and the 7,500 satellite constellations proposed by SpaceX are way oversized and simply put, a waste of money and efforts.

gbear605 7y ago
There are essentially no variable costs for the satellites, and since they will be in LEO, a satellite to supply rural US also supplies everywhere in India. So SpaceX can sell their services for $5/month (or less) to people in India and $50/month to people in the US. Everyone (within certain longitude bounds) is a possible customer.
s_y_n_t_a_x 7y ago
The mesh of satellites favor the northern hemispheres, you have a much lower density in lower regions, so you could charge less for them. And they could stop launching them if they don't see a supply, basically just matching their registration numbers and launching more when the bandwidth/users require it. Those numbers seem to just be a target for an ideal completed system, not for it to become operational.
travisoneill1 7y ago
At $10 billion to deploy and lets assume 5 years satellite lifetime and $1 billion a year to operate, this is $3 billion a year or $250 million / month. You would only need 5 million subscribers at $50 / month to break even.
- zaroth 7y ago
  Seriously. I’ll switch just so I don’t have to pay Comcast. Now I just need some Tesla solar panels and a couple powerwalls, and betweeen that, a well, my septic system, I can cut every cable coming into my house. Well, I do use natural gas for heating and I love my gas stove, but nearly there! If only the receiver and the power requirements were small enough to fit in my cell phone!

gbear605 7y ago

There are essentially no variable costs for the satellites, and since they will be in LEO, a satellite to supply rural US also supplies everywhere in India. So SpaceX can sell their services for $5/month (or less) to people in India and $50/month to people in the US. Everyone (within certain longitude bounds) is a possible customer.

s_y_n_t_a_x 7y ago

The mesh of satellites favor the northern hemispheres, you have a much lower density in lower regions, so you could charge less for them. And they could stop launching them if they don't see a supply, basically just matching their registration numbers and launching more when the bandwidth/users require it. Those numbers seem to just be a target for an ideal completed system, not for it to become operational.

travisoneill1 7y ago

At $10 billion to deploy and lets assume 5 years satellite lifetime and $1 billion a year to operate, this is $3 billion a year or $250 million / month. You would only need 5 million subscribers at $50 / month to break even.

zaroth 7y ago
Seriously. I’ll switch just so I don’t have to pay Comcast. Now I just need some Tesla solar panels and a couple powerwalls, and betweeen that, a well, my septic system, I can cut every cable coming into my house. Well, I do use natural gas for heating and I love my gas stove, but nearly there! If only the receiver and the power requirements were small enough to fit in my cell phone!