Elon Musk became the world’s richest person this month by upending the global auto industry and disrupting aerospace heavyweights with reusable rockets. Now he’s setting his sights on another business dominated by entrenched incumbents: telecommunications.
Musk’s Space Exploration Technologies Corp. has launched more than 1,000 satellites for its Starlink internet service and is signing up early customers in the U.S., U.K. and Canada. SpaceX has told investors that Starlink is angling for a piece of a $1 trillion market made up of in-flight internet, maritime services, demand in China and India — and rural customers such as Brian Rendel.
Rendel became a Starlink tester in November after struggling for years with sluggish internet speeds at his 160-acre farm overlooking Lake Superior in Michigan’s Upper Peninsula. After he paid about $500 for the equipment, FedEx arrived with a flat dish and antenna. For $99 a month, Rendel is now getting speeds of 100 megabytes per second for downloads and 15 to 20 for uploads — far faster, he says, than his previous internet provider.
“This is a game changer,” said Rendel, a mental health counselor, who can now easily watch movies and hold meetings with clients over Zoom. “It makes me feel like I’m part of civilization again.”
For months, SpaceX has been launching Starlink satellites on its Falcon 9 rockets in batches of 60 at a time, and the 17th Starlink launch was on Jan. 20. There are now roughly 960 functioning satellites in orbit, heralding an age of mega-constellations that have prompted worries about visual pollution for astronomers.
But the Starlink array in low-Earth orbit, closer to the planet than traditional satellites, is enough to enable SpaceX to roll out service along a wide swath of North America and the U.K. As SpaceX sends up more satellites, the coverage area will grow, expanding the potential customer base — and revenue stream — beyond the initial stages of today.
SpaceX didn’t respond to a request for comment.
“The big deal is that people are happy with the service and the economics of Starlink versus other alternatives,” said Luigi Peluso, managing director with Alvarez & Marsal, who follows the aerospace and defense industries. “SpaceX has demonstrated the viability of their solution.” Bloomberg