SpaceX Starlink just won a huge customer

On Saturday, October 24, SpaceX crossed the finish line, receiving 800 Starlink broadband Internet satellites in orbit that required it to offer “moderate” Internet coverage over a large portion of the Earth’s surface. Two days later, the company officially opened StarLink to “beta” customers, advertising prices of $ 99 per month (plus a $ 499 hardware fee) for prices for 50Mb / s to 150Mb / s broadband Internet service. did.

Demand for the new service in the US has reportedly intensified, and demand in Canada is also set to accelerate – because this month, regulators approved StarLink to provide Internet service in Canada as well.

SpaceX Starlink Internet is coming – in Canada. Image Source: Getty Image

Well, how aboot is this?

Yes, in a tweet, on November 9 around the Northern Hemisphere, the Canadian Ministry of Innovation, Science and Economic Development (ISED) announced that it had granted “regulatory approval” @SpaceXStarlink Low Earth orbit satellite constellation. ”

How important is this to Canada, and is a 50 Mbps internet speed really good deal for $ 99? Together Comcast Offering 200 mbps for less than $ 50 in metro locations in the US, you might not think so, but here’s the thing: listening to the tweets of elated Canadian (future) customers, and their laments about being forced to pay Listening to, for example, $ 46 a month (possibly Canadian) for 6 Mbps, $ 75 for 5 Mbps, or even $ 95 for 2 Mbps on average, it’s pretty obvious that Service Starlink There will be a major improvement for a lot of rural users.

What’s more, in an effort to win a $ 16 billion rural broadband contract from the FCC, SpaceX is working hard to get its speed up to 1 gigabyte per second – as much as a 20x improvement on the beta service’s initial capabilities.

Why Canada?

Meanwhile, Canada is a logical market for SpaceX, aiming to orbit a limited number of satellites (the company eventually wants to keep 12,000 satellites) and bring in some revenue to finance its expansion. Although SpaceX is promising “near global coverage of the populated world” by 2021, the StarLink website states that, where StarLink is orbiting the initial deployment of satellites, SpaceX is actually only “in 2020″ to North America and Canada The Internet can provide coverage. ” . ”

However, this is fine with Canada, which is happy to take on SpaceX on its offer. As ISED Minister Navdeep Bains explained, “Our government believes that high-speed Internet access is no longer a luxury – it is necessary.”

Local media began reporting this week at an invitation to Canadian customers to participate in the beta program. According to these reports, SpaceX is offering Canadians roughly the same service price it is offering in the US – C $ 129 (about $ 98 US) for self-service, and $ 649 ($ 495 US for hardware) ). And Musk recently promised a “major expansion” of service “in 6 to 8 weeks” in Canada.

What does SpaceX mean – and investors

Even a relatively small number of big businesses can be linked to SpaceX, however, and a huge opportunity for investors. As internal SpaceX documents show, the company expects to receive more than $ 4 billion in annual revenue from Starlink subscriptions early next year, and increase revenue revenue to $ 20 billion by 2025 on operating profit margins of 60. % It is done.

This means that in just a few years, Starlink – which generated no revenue like the previous year – could become a $ 13 billion profitable machine. Oh, and here’s the best part: SpaceX has planned an IPO Starlink so you can do a part of it yourself. The COO himself said so.

Leave a Reply