SpaceX has just won a key grant worth nearly $1bn from the Federal Communications Commission (FCC) to bring its low-Earth orbit Starlink satellite broadband service to people in 35 US states.
Elon Musk's space transportation services company has scooped a sizable chunk of the FCC's first round of support under the Rural Digital Opportunity Fund (RDOF). The first phase is worth $9bn, but the total amount allocated to the fund to patch up rural America's patchy internet is funded to the tune of $16bn over 10 years.
https://www.zdnet.co...o-35-us-states/
SpaceX has launched nearly 900 spacecraft into low-Earth orbit over the past 12 months, a trajectory that has skyrocketed Morgan Stanley Research's approximate "base" valuation of the aerospace company to $101 billion from $52 billion last year, and up to $200 billion in a best-case scenario.
Success, however, is far from guaranteed.
"This is probably one of the most challenging, if not the most challenging project, we've undertaken. No one has been successful deploying a huge constellation for ... satellite internet," Gwynne Shotwell, president and COO of SpaceX, told TED in May 2018. She estimated it'd require "$10 billion or more" to deploy the network's first phase of roughly 4,400 satellites. Musk said in March of this year that a key focus of Starlink is "making it not go bankrupt."
Even as public beta test users report Starlink can offer broadband-like performance in rural America, telecommunications industry analysts tell Business Insider it may take the audacious project several years to break even, let alone profit.
As part of that uphill battle, they say, SpaceX needs to simultaneously reduce costs, pull subscribers from the small US satellite-internet market, dramatically expand that market, and convince investors to continue pouring billions into the company's coffers.
https://www.business...-profit-2020-11
Edited by Victoria Watcher, 08 December 2020 - 11:29 AM.