What happened: Starlink, which is currently in beta, is a SpaceX company designed to broadcast over the Internet, especially in areas far from satellites orbiting Earth.
SpaceX offers the service at $ 99 per month and a one-time additional cost of $ 499 for the kit which includes a user terminal and a Wi-Fi router to connect to the satellites.
“To date, more than half a million people have placed an order or deposited a depot for Starlink,” said Siva Bharadvaj, SpaceX’s space operations engineer, during a broadcast of the latest Starlink satellite launch by SpaceX.
At those rates, and if the 500,000 orders are processed, that will add up to $ 594 million in revenue per year and $ 249.5 million more if the one-time cost of $ 499 is also included.
SpaceX has previously said orders are “fully refundable” and that the service, which is designed to reach anywhere on earth may have limits, is not guaranteed when making a deposit.
See Also: Starlink Starts Taking Preorders, Musk Eyes IPOs When Cash Flow Is Predictable
Why is this important: Musk, who also directs Tesla Inc (NASDAQ: TSLA) said on Twitter, “most likely” all 500,000 pre-orders will be served, adding that it is when user numbers reach millions that Starlink will face “more of a challenge.” .
The only limitation is the high density of users in urban areas. Most likely, every initial 500,000 will receive a service. More of a challenge when we get into the multi-million user range.
– Elon Musk (@elonmusk) May 4, 2021
Interest in the space Internet network is on the rise as more and more companies look into capabilities. Defense contractor Lockheed Martin Corp’s The Space Unit (NYSE: LMT) has teamed up with Omnispace LLC to deploy something similar and in direct competition with SpaceX.
The space network would eliminate the need for ground terminals and provide 5G capabilities directly from space to telecommunications devices.
Price action: Tesla shares closed down 1.65% at $ 673.60 on Tuesday.
Photo by JD Lasica sur Wikimedia
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