October 16, 2021

Starlink still needs $30 billion in investment according to Musk

CEO Elon Musk believes that $20 to $30 billion in investment is needed to make Starlink profitable. The money is needed to ensure that the Starlink network can provide worldwide coverage.

Elon Musk Predicted Starlink Would Generate Billion in Revenue. Don't Believe It. | Nasdaq

Musk made the statements in an interview at the Mobile World Congress in Barcelona, ​​Reuters reports. He called in via video link and said, among other things, that he thinks it will take another 20 to 30 billion dollars to make Starlink profitable.

So far, 1,500 satellites have been launched into orbit. The satellites are intended to provide internet access to people all over the world, including in remote areas. Starlink is currently available in about a dozen countries. Orders for Starlink can now also be placed in the Netherlands and the first users have been able to activate their Starlink connection .

Musk also hopes to connect half a million people to the Starlink network in the next twelve months. The service costs 99 euros per month in the Netherlands. To use Starlink, a hardware kit is required to connect to the satellites. This package costs 499 euros.

The question is whether Starlink can compete with existing internet services. According to some experts, Starlink will find it difficult to recoup the investment costs if only people in remote areas subscribe to the internet service. In addition, the Starlink connection is not fast enough to compete with fiber optic, which is available in more and more places.