For years now, SpaceX’s Starlink internet service has been selling its equipment at a loss. Now though, SpaceX has announced that it has now improved its production so that it can sell Starlink satellite kits without losing money.
“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 according to CNBC.
SpaceX for years, has been investing heavily in its Starlink service to build its worldwide internet service. This has meant being willing to operate at a loss as it builds out its service. Now though they are taking steps to become profitable as the service matures.
This comes as last month’s launch brought the total number of Starlink satellites in space to over 5,000, and SpaceX company isn’t slowing down. SpaceX has authorization to launch 12,000 more Starlink spacecraft and is waiting on permission to launch an additional 30,000.
The milestone is a continuation of SpaceX’s goal to provide high-speed, low-latency internet service around the world. The satellite constellation orbits about 35,000 km closer to the earth than other satellites which shortens round-trip data times for improved speed. The vast number of satellites helps provide high-speed home internet service to households that might’ve otherwise had no options. SpaceX wasn’t immediately available for comment.
Starlink isn’t as widely available currently and has a years-long waitlist, according to Satellite Internet. In May, Starlink released a new group of plans with sky-high internet speeds for an equally steep price. Plans range from $250 to $5,000 a month in addition to a one-time equipment fee of $2,500. The kit includes a Starlink dish, power supply, wall mount, Wi-Fi router, required cables and a base.