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SpaceX No Longer Taking Losses To Produce Starlink Satellite Antennas (cnbc.com) 108

Elon Musk's SpaceX is no longer absorbing the cost of the Starlink antennas it sells with its satellite internet service, a company executive said Wednesday, a key step to the company improving its profitability. CNBC reports: "We were subsidizing terminals, but we've been iterating on our terminal production so much that we're no longer subsidizing terminals, which is a good place to be," Jonathan Hofeller, SpaceX vice president of Starlink and commercial sales, said during a panel at the World Satellite Business Week conference.

SpaceX sells consumer Starlink antennas, also known as user terminals, for $599 each. For more demanding Starlink customers -- such as mobile, maritime or aviation users -- SpaceX sells antennas with its service in a range between $2,500 and $150,000 each. When SpaceX first began selling its Starlink service, company leadership said the terminals cost about $3,000 each to manufacture. The company improved that to about $1,300 per terminal by early 2021. Hofeller's comments Wednesday indicate the terminals now cost less than $600 each to make, mass production savings that Hofeller credited as "one of our keys to success."

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SpaceX No Longer Taking Losses To Produce Starlink Satellite Antennas

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  • by brunes69 ( 86786 ) <slashdot@nOSpam.keirstead.org> on Friday September 15, 2023 @07:55AM (#63850678)

    Starlink routinely runs promos where the terminals go for $99 or $199 with a contract, just like a cell phone.

    So while they have reduced their cost, they are still subsidizing them

    Eventually I imagine they will become like other ISPs where the terminal rental cost is just baked into your monthly fee for most subscribers and no one thinks about it.

    • Wow, yours is the only comment actually on topic with the original article. Well Done!
      • It's funny that the only on topic post is marked as a troll

        • by CAIMLAS ( 41445 )

          That's the way things work on slashdot, anymore. You've got to be actively pro-regime or you are considered against it. Doesn't matter if it's topically related to AGW, GWOT, US jingoism, child grooming, sexual mutilation, or who you're voting for - you'd better adhere to regime affinity or you'll get modded troll, overrated, etc.

          I'm convinced the moderation isn't being done by actual people, but by bots. There can't possibly be that many people literally trolling /. looking for badthink. It happens quickly

    • For what it provide the cost of the service hardware and software is dirt cheep. Mountaintop RV site or war zone, Starlink is the only leap of connectivity that compares to epic 5G, OC3, T1 and 56k.
      • I hear you on "mountaintop RV site" but what blows my mind is in many "regular" applications, getting internet from OUTER SPACE is easier & cheaper than a terrestrial solution.
        • but what blows my mind is in many "regular" applications, getting internet from OUTER SPACE is easier & cheaper than a terrestrial solution.

          Why? It's just a cellular phone system:
          - With the cells little satellites in low-earth orbit,
          - each "tower" cite a cheap satellite covering a broad (though moving) area, rather than a big ground-based installation.
          - each "cell" having a lot more "sectors" than the ground based version.

        • by tlhIngan ( 30335 )

          I hear you on "mountaintop RV site" but what blows my mind is in many "regular" applications, getting internet from OUTER SPACE is easier & cheaper than a terrestrial solution.

          Because it is.

          A terrestrial solution requires infrastructure - you need power and a network link, and you need people to maintain that infrastructure.

          Let's say you erect a wireless solution - you need a tower somewhere and it needs power and an uplink. It also needs people because it needs maintenance. This limits where you can in

    • see, it's an easy problem to solve.

      every time the cost drops below price, lower price!'

      ta-da!

  • Their key to success is that they don't provide their own equipment? If any other internet provider said that people would tell them to blow themselves. A little competition will be a good thing. The fact that they cost anything at all is bad enough.
    • by Guspaz ( 556486 )

      The key to their success is that they've lowered the manufacturing cost of their terminal by a factor of at least five, getting the cost of manufacture under the selling point. Are you suggesting that they should just include the satellite terminal for free?

      • Do sat tv providers make you pay for the equipment?
        • by hawk ( 1151 )

          yes, but it can get included with your contracts, like phones.

          And when it gets old enough, they don't want it back. We just got told we "could" keep the pre-HD equipment from Dish that my mother in law had been using.

  • In other news, SpaceX is currently running a campaign [spacexipoaccess.com] to
    raise money [moonshot.ch].

    We do wish them good luck.

    Or is it existing investors trying to sell? Well, we wish them good luck too, right?

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