SpaceX, led by Elon Musk, predicted that the number of Starlink users would exceed 20 million by 2022, but the reality is just over 1 million.


by Tony Webster

SpaceX , a private space company founded by Elon Musk, launches satellites and spacecraft, and also operates Starlink , a satellite internet service. SpaceX once predicted that ``Starlink subscribers would reach 20 million by 2022,'' but in reality, it only gained about 1 million subscribers, which is significantly lower than that. This is reported by the economic newspaper Wall Street Journal.

Starlink Surges but Is Still Far Short of SpaceX's Goals, Documents Show - WSJ
https://www.wsj.com/tech/spacexs-starlink-demonstrates-its-power-but-still-needs-growth-9906c5b0



SpaceX projected 20 million Starlink users by 2022—it ended up with 1 million | Ars Technica
https://arstechnica.com/tech-policy/2023/09/spacex-projected-20-million-starlink-users-by-2022-it-ended-up-with-1-million/

The Wall Street Journal reported that in a presentation SpaceX made in 2015 to raise funds from investors, the satellite internet division, later named Starlink, would be worth about $12 billion in 2022. ) and was expected to generate an operating profit of $7 billion (approximately 1 trillion yen). SpaceX also predicted at the time that satellite internet service subscribers would reach 20 million by the end of 2022.

However, according to internal documents recently viewed by the Wall Street Journal, Starlink's revenue will be $1.4 billion (approximately 210 billion yen) in 2022, and although it is growing, the presentation forecast is It's not far off. The document did not mention the profitability of Starlink's business, but it did say that it was in the red overall in 2022, and slightly in the black in the first quarter of 2023.

Additionally, the number of Starlink subscribers has not increased as much as previously predicted. SpaceX reported that the number of Starlink active users exceeded 1 million in December 2022, and it seems that it will be a long time before the number of 20 million users is reached.



The Wall Street Journal said, ``Starlink is running up against a reality raised by legions of satellite internet skeptics: the business is able to provide satellite internet service to the vast majority of the world's population who can afford high-speed broadband.'' But you live in a city, where internet service is readily available, usually at a lower monthly cost than Starlink, and doesn't require specialized equipment.

In recent years, Starlink has focused on the fact that most of the earth's surface is ocean, making it difficult to construct base stations, and is exploring ways to provide satellite internet to ships and aircraft . However, the Wall Street Journal noted that the market for potential customers such as international shipping companies, coastal oil rigs, and aviation companies is relatively small.

However, Mr. Musk has often made exaggerated predictions before implementing business, and the fact that Starlink was profitable in the first quarter of 2023 is a good sign. According to regulatory filings, SpaceX last raised money more than a year ago at the time of writing, and Musk said that as of April 2023, 'no additional funding is needed.' It shows the view .

As of July 2023, Starlink's service has been deployed in more than 60 countries , and user kits for use are also sold at electronics stores and home centers. Costco in Japan also began selling Starlink devices in August 2023.

Also, although Starlink antennas have long been manufactured at a loss, SpaceX executives reported at a business meeting held on September 13 that SpaceX is no longer manufacturing Starlink antennas at a loss.

SpaceX no longer taking losses to produce Starlink satellite antennas
https://www.cnbc.com/2023/09/13/spacex-no-longer-taking-losses-to-produce-starlink-satellite-antennas.html



In addition, at the beginning of the conflict between Russia and Ukraine, Mr. Mask announced that he would provide Starlink to Ukraine first, but it later turned out that SpaceX was restricting the use of Starlink by the Ukrainian military . It has also been revealed that Mr. Mask ordered Starlink communications to be cut off to prevent the Ukrainian military from bombing Russian warships.

Elon Musk apparently ordered Starlink communications to be cut off to prevent Ukraine from bombing Russian warships - GIGAZINE



Regarding this matter, the US Senate Armed Services Committee has begun an investigation into ``why the decision to support Ukraine was made by Starlink, a private company, and not by the government, including the Department of Defense.'' That's it. Chairman Jack Reed said, ``The committee is working on this issue because it brings to light serious national security responsibility issues. cannot assume ultimate responsibility for the national security of the United States.'

Elon Musk Denial of Ukraine's Starlink Request Prompts Senate Probe - Bloomberg
https://www.bloomberg.com/news/articles/2023-09-14/elon-musk-s-denial-of-ukraine-s-starlink-request-prompts-senate-query



Related Posts:

in Note, Posted by log1h_ik