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It is actually not clear to me if the service will become profitable: Elon Musk recently said SpaceX needs $30 billion for Starlink to survive[1] (meaning it i
by joakleaf 5y ago
It is actually not clear to me if the service will become profitable:
Elon Musk recently said SpaceX needs $30 billion for Starlink to survive[1] (meaning it isn't profitable now).
He also said that they are aiming for 42000 satellites.
And he said, that they are losing money on the Starlink terminals ($500 / unit).
Starlink is $99/month. If a Falcon 9 carries about 60 SL satellites, and they are aiming for 40000 satellites in orbit, that means they need to do 666 Falcon 9 launches every 5 years. That's 11/month, btw.
Even, if reused Falcon 9 launches are as cheap $10 million/launch (I don't think anyone outside SpaceX knows the actual price). That's $6.7 billion in launch costs alone every 5 years.
$6.7B/(60 months * $99/(month*customer)) = 1,127,947 customers
So they need at least 1,127,947 paying customers to cover launch costs alone just to renew the sky-side of the network. That doesn't include the cost of producing the satellites, ground infrastructure (including terminals), bandwidth cost when connecting to the rest of the internet, staff, marketing, etc.
Now, of course, Starship may make the launches cheaper, and 1.1 million customers is not completely unlikely. However, if he already foresee the need of $30 billion now, their costs are probably significantly higher than my estimated launch costs above.
So let's hope we will not be left with an abandoned constellation of satellites that ends up causing the Kessler Syndrome, because SpaceX abandons the endeavour or goes bankrupt 5 years from now.
[1] https://www.businessinsider.com/elon-musk-starlink-spacex-bankruptcy-funding-30-billion-2021-6?r=US&IR=T https://www.businessinsider.com/elon-musk-starlink-spacex-ba...
- inglor_cz 5y agoYou won't get Kessler syndrome that low. Orbital decay is significant at Starlink altitudes. Kessler syndrome is a worry higher up, but not here. Even if the entire fleet was abandoned and satellites started crashing into one another, the debris would have been gone in 5 years at most, probably three. For future profitability of the scheme, I consider the terminal price to be pretty important. They cannot really afford to lose money on it long term. Fortunately, manufacturability tends to improve over time.
- Bombthecat 5y agoI don't see any issue with getting 2 million customers on a global scale...