SpaceX CEO Elon Musk said his company’s Starlink division is trying to cut the price of its user terminal from $500 to as low as $250. Starlink has been charging $99 a month for Internet service during its beta phase plus $500 up front for the user terminal/satellite dish, and it’s losing money on the sale of each dish.
“We are losing money on that terminal right now. That terminal costs us more than $1,000,” Musk said yesterday during a Mobile World Congress Q&A session (see YouTube video posted by CNET). “We obviously are subsidizing the cost of the terminal. We are working on next-generation terminals that provide the same level of capability, roughly the same level of capability, but cost a lot less.”
Musk noted that “selling terminals for half price is not super compelling” given that SpaceX is planning for millions of Starlink customers. “Over time, we’d like to reduce the terminal cost from $500 to, I don’t know, $300 or $250, or something like that.”