SpaceX outsourced the production of its Starlink user terminal satellite dishes to a company called STMicroelectronics, as reported by Business Insider. The Swiss company was responsible for building the Starlink satellites currently being used in SpaceX’s public beta, and the contract could easily be worth billions of dollars, according to a source with insider knowledge.
In Starlink’s beta, SpaceX is charging $99 (USD) per month for internet service, and $499 for the kit which includes a tripod, user terminal (satellite dish), and a router. An inside source familiar with the matter also shared that it was unlikely SpaceX could manufacture the user interface for anything less than $500 (USD).
Deployment of 60 Starlink satellites confirmed pic.twitter.com/Ddg9EPn5gP
— SpaceX (@SpaceX) November 25, 2020
The insider, who declined to share their name, said, “The production agreement specifies 1 million terminals at a price of roughly $2,400 each.” The person continued, “The original timeline for that production run was end-2019, but it has been extended.”
In March, the Federal Communications Commission (FCC) granted SpaceX permission to deploy its 1 million Starlink units. Since then, SpaceX has shared with the FCC and the public that it plans to produce “thousands of consumer user terminals per month,” as the company is “heading toward high-rate production.”
As the world prepares for improved access to the internet, multi-billion dollar deals will likely sustain the company’s probable relationship with STMicroelectronics, who may end up with a lucky contract for the long haul.
Currently, Starlink internet beta is available in a limited capacity in the United States and southern parts of Canada, with further expansion coming soon says Elon Musk.
