Pentagon spars with SpaceX over Starlink price hike during Iran war
Key takeaways
- The disagreement over Starlink’s use on LUCAS suicide drones – a cheap U.S.
- The ongoing disputes, which have not previously been reported, underscore how the Pentagon’s growing reliance on SpaceX is handing Musk greater leverage over a critical layer of U.S.
- Unlike consumer Starlink terminals available at stores including Walmart, SpaceX sells a military-specific version called Starshield to the Pentagon under a 2023 agreement.
Why this matters: local context for readers following news across Pakistan and the region.
Add ARY News on Google AAResize NEW YORK: As U.S. kamikaze drones guided by Elon Musk’s Starlink network began to make visible gains in the war against Iran, senior Space X officials reached a conclusion: The Pentagon should be paying more for access to their satellite Wi-Fi network.
Within weeks of the United States launching its bombing campaign, Space X executives met Pentagon officials and argued the military had been paying about $5,000 for connection per terminal while effectively using a higher tier of service worth closer to $25,000, according to two sources familiar with the matter and Pentagon documents reviewed by Reuters.
The disagreement over Starlink’s use on LUCAS suicide drones – a cheap U.S. model comparable to Iran’s Shahed that can circle over a target area before diving to detonate on impact – is part of increasing tensions between SpaceX and the Pentagon over Starlink pricing in recent months, according to interviews with five people familiar with the matter and the documents.