Reuters: SpaceX raised Starlink prices for American drones five times

As Americaʼs LUCAS kamikaze drones, controlled via Elon Muskʼs Starlink satellite network, began to make headway in the war against Iran, SpaceX concluded that the Pentagon should pay more for access to the network.

Reuters reports this, citing sources and Pentagon documents that journalists have reviewed.

A few weeks after the US launched a war against Iran, SpaceX executives met with Pentagon officials and stated that the military was paying about $5 000 per terminal, using higher-end services — costing almost $25 000.

Unlike consumer Starlink terminals that can be purchased in American stores, SpaceX is selling the Pentagon a military version called Starshield under a 2023 deal. Starshield terminals can connect to both commercial Starlink satellites and a separate, more secure “constellation of satellites”, also called Starshield.

SpaceX has argued that the American drones operated under conditions more consistent with its aviation subscription, rather than cheaper ground or mobile service. Defense Department officials have argued that the $25 000 price tag is a monthly fee designed for aircraft, not kamikaze drones that use the Internet for only a few minutes or hours.

The Pentagon eventually agreed to pay SpaceXʼs proposed inflated price, nearly doubling the cost of each LUCAS drone — they previously cost about $30 000 per unit.

The disagreement over the use of Starlink for drones is part of a growing tension between SpaceX and the Pentagon over pricing. The Pentagon is also seeking to help Iranians bypass an internet blockade that has been in place since January and is at odds with SpaceX over the cost of a plan to provide direct connectivity to the population via Starlink. It is similar to 5G service.

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