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It's cool, for sure. But until they stop selling a dollar for 90c, then they don't have real business model.
by justapassenger 3y ago
It's cool, for sure. But until they stop selling a dollar for 90c, then they don't have real business model.
- JumpCrisscross 3y ago> until they stop selling a dollar for 90c, then they don't have real business model Starlink is glued to a transport monopoly. It doesn't take much imagination to see how economies of scale on production and marketing make those numbers work.
- fallingknife 3y agoAmazon sold a dollar for 90 cents for 20 years, and I don't see anyone laughing now. It's not a bad business model for a massive fixed cost but minimal marginal cost business like Starlink.
- justapassenger 3y agoIt does have minimal marginal cost, as long as you live in the right place on earth, without many other customers next to you. Once you exceed, fairly limited amount of people that can use it one cell, you need to grow massively your fixed cost, as you need to grow the whole constellation or just won't be able to grow. Time will tell if that will add up. I don't think it's obvious it will.
- Breza 3y agoYou nailed a big difference between Starlink and Amazon: if all my neighbors become heavy users of Amazon, Amazon becomes more profitable.
- LargeTomato 3y agoThe starlink satellites decay after 5 years. The constellation costs $40B. That's an $8B annual burn rate just to maintain the current constellation.
- inemesitaffia 3y agoWhere did you get this $40 billion idea?