Pentagon spars with SpaceX over Starlink price hike during Iran war
SpaceX says the drones use a higher service tier and the Pentagon ultimately agreed to pay nearly double per LUCAS unit, Reuters reported.
- On May 26, SpaceX executives concluded the Pentagon should pay significantly more for Starlink access as U.S. LUCAS kamikaze drones guided by the network made visible gains in the Iran war, arguing the military had been underpaying about $5,000 per terminal for service worth closer to $25,000.
- Tensions emerged quickly after the Pentagon launched its February 28 assault on Iran, where Starshield terminals were already deployed across more than a dozen drone systems; SpaceX's constellation of roughly 10,000 satellites accounts for more than 60% of those in orbit, giving the company singular leverage.
- SpaceX proposed charging as much as $500 million up front plus $100 million monthly to operate the capability, prompting alarm from defense officials; Pentagon officials argued the $25,000 price tag was designed for aircraft, not drones using Starlink connection for only minutes before detonating on impact.
- Deputy Secretary of Defense Steve Feinberg and other senior officials remained uneasy despite agreeing to the higher fees; Pentagon officials met with Terrence O'Shaughnessy, a retired four-star Air Force general leading SpaceX's defense business, during an April ceasefire while considering 3,500 additional Starshield subscriptions worth hundreds of millions annually.
- SpaceX's IPO next month could value the company at roughly $1.75 trillion, amplifying Musk's leverage over Pentagon operations spanning satellite launch, Starlink connectivity and military variants, while recalling 2022 when Musk ordered Starlink service switched off in parts of Ukraine, disrupting a key counteroffensive.
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Musk company asked for an additional $20,000 for the use of terminals to operate every suicide drone. Pentagon accepted but says it is looking for new competitors.
Musk Pocketed More from America's War After Pushing a Fivefold Starlink Price Hike on the Pentagon
As US kamikaze drones guided by Elon Musk's Starlink network began to notch visible gains in the war against Iran, senior SpaceX executives reached a blunt conclusion: the Pentagon was getting that firepower on the cheap. Within weeks of the United States launching its bombing campaign, SpaceX executives met defence officials and argued that the military had been paying about $5,000 (£3,700) per Starlink terminal while drawing on a premium aviat…
SpaceX demands Starlink price hike from Pentagon during Iran war | Honolulu Star-Advertiser
NEW YORK >> As U.S. kamikaze drones guided by Elon Musk’s Starlink network began to make visible gains in the war against Iran, senior SpaceX officials reached a conclusion: The Pentagon should be paying more for access to their satellite Wi-Fi network.
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