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> SpaceX didn't launch this service as a practical or sensible business model for them, they already get paid to launch other telecommunications equipment into
by nickik 6y ago
> SpaceX didn't launch this service as a practical or sensible business model for them, they already get paid to launch other telecommunications equipment into space, they are doing this to keep on the government, the public's tit.
This is pretty much nonsense. Spend 10min actually researching the market and you would know it is nonsense.
Rocket launches are tiny part of the space market, even if SpaceX had a monopoly it would not be that much money. Also, the most valuable launches are trying up and there are not nearly enough of them for SpaceX to continue to grow.
Telecommunications however is a much bigger market, and that is why SpaceX is going into it. There is a gigantic market to be captured and SpaceX with cheap launch and amazing sat technology have a chance to do it. This is also a global play, the idea that this was done just to get access to US subsidies is nonsensical.
They have been planning for this for many, many, many years long before it was even clear if they could get access to this FCC subsidy at all, something that was disputed until just a couple months ago. They didn't invest multiple billion into this project to hopefully get less then 1 billion back in the next 10 years.
As to why SpaceX takes advantage of this, why should they not? SpaceX would do the same thing without these funds, but why not take advantage of it if the government offers it?