Last week the Pentagon revealed that SpaceX sent a letter concerning its contribution of Starlink mobile internet systems to Ukraine. The letter relays the message that providing this critical service to the Ukrainians, especially the Ukrainian military, is expensive. SpaceX asks the Department of Defense to pick up the mounting costs of the satellite system.
Elon Musk heroically came through for the people of Ukraine when Putin invaded the country and internet service was disrupted. The satellites provide invaluable information for Ukraine’s military operations. Starlink also enables civilian Ukrainian residents the ability to stay connected to the outside world. SpaceX has provided 20,000 terminals to Ukraine. An estimated 85% of those terminals were paid for by other countries, including the United States. The Ukrainian commander-in-chief sent a letter to Musk in July and praised the terminals and asked for 6,200 more, and 500 monthly to offset losses in the war. Pentagon deputy press secretary Sabrina Singh would only confirm that DOD has been in communication with SpaceX, but not the letter. “I can confirm that the department has been in communication with SpaceX regarding Starlink,” Singh said. “We’re working with our partners and allies trying to figure out what’s best.”
“There are certainly other Satcom capabilities that exist out there,” she added. “There’s not just SpaceX. There are other entities that we can certainly partner with when it comes to providing Ukraine with what they need on the battlefield.”
Musk tweeted on Friday that the “operation has cost SpaceX $80 million and will exceed $100 million by the end of the year,” while CNN reported that the company believes maintaining the use of Starlink would cost more than $120 million for the rest of the calendar year and could cost nearly $400 million for the next 12 months.
SpaceX’s director of government sales wrote to the Pentagon: “We are not in a position to further donate terminals to Ukraine, or fund the existing terminals for an indefinite period of time.”
It’s understandable that Musk and SpaceX would look for some assistance with financing this operation. Even for the world’s richest man, it’s a large financial commitment. At the time I saw Musk’s tweet about it, I thought to myself that he probably would find a way to continue to provide the service. By Saturday he tweeted that he will.
The hell with it … even though Starlink is still losing money & other companies are getting billions of taxpayer $, we’ll just keep funding Ukraine govt for free
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— Elon Musk (@elonmusk) October 15, 2022
Musk has been involved in supporting Ukraine since Putin’s invasion. He even suggested a peace proposal between Ukraine and Russia that was roundly criticized by many.
The world’s richest man on Friday said that Starlink is “still losing money” a day after CNN revealed that SpaceX told the Pentagon in a September letter that it could no longer fund the service for Ukraine and asking the Defense Department to take over funding of Starlink for Ukraine.
However, Musk alleged earlier this month that Starlink terminals for Ukraine use 100 times more data than an average household and have already cost the company around $80 million.
In a response to Musk’s tweet Saturday, investor David Sacks said, “no good deed goes unpunished” to which Musk responded, “Even so, we should still do good deeds.”
Critics of Musk said on Twitter, the social media platform he is currently attempting to buy, that the Tesla boss has received billions of dollars in subsidies from the United States over the years.
It isn’t clear that SpaceX has established future plans for service in Ukraine. Senior U.S. officials said Starlink funding has been discussed in meetings and the matter is being weighed. No decision has been made yet.
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