Elon Musk will invest up to $ 10 billion in Starlink before achieving positive cash flow. The manager has participated in the MWC in Barcelona. Starlink has agreements with two large telecommunications companies in relevant countries. “The objective is to avoid bankruptcy,” he said.
Elon Musk , founder of companies like Tesla or SpaceX, continues to bet heavily on the world of satellites. In an interview that took place this Monday in the context of the Mobile World Congress held in Barcelona, Musk acknowledged that he will have to invest between 5,000 and 10,000 million dollars to achieve positive cash flow in his Starlink project, a constellation of satellites that intends to provide service to all the world. With everything and with this, the controversial businessman has been clear: “The first objective is to avoid bankruptcy,” he pointed out.
In his appearance, Musk noted that SpaceX’s satellite Internet network , Starlink , “recently” surpassed 70,000 active users and expects faster growth for next year. “We are on track to have a few hundred thousand users, possibly more than 500,000 users in 12 months, ” he admitted.
The controversial businessman has also referred to the economic objectives of the company that will build an Internet network interconnected with thousands of satellites to offer high-speed connection to consumers anywhere on the planet, noting that despite the “huge” investment That means before the project is fully underway, Starlink can tap into an even larger market, estimating it could generate up to $ 30 billion a year.
Instead, as of today, it has recognized that the satellite company is “losing money” on the antennas it provides to customers, since the hardware alone costs about $ 1,300 and SpaceX charges users just $ 500. “We are working. in a next-generation terminal that provides roughly the same level of capacity, but costs much less, “he added.
Musk’s goal is to reach the entire planet with this satellite system. “Starlink is now operational in about 12 countries, with more being added every month,” he said, adding that “we are getting closer to the launch of satellite 1.5, which has laser links between satellites, and which will be used especially for continuous connectivity in the Arctic and Antarctic regions “.
Agreements with ‘telecos’
Musk has taken advantage of his interview at the MWC to announce that Spacelink has already signed agreements with two telecommunications giants for the management of difficult-to-serve clients and infrastructure. Instead, the manager has refused to specify the names of the companies for now.
In this sense, the South African has recognized that his satellite internet company is also in contact with other important players in the sector worldwide to be able to extend their collaborations in the coming months.