Pentagon spars with SpaceX over Starlink price hike during Iran war
SpaceX said the military should pay more for Starshield access on attack drones and for a direct-to-cell plan, Pentagon documents and sources said.
- SpaceX demanded a fivefold price increase from the Pentagon for satellite connectivity guiding U.S. LUCAS kamikaze drones over Iran, arguing that the intense military usage matched its premium $25,000-a-month aviation tier rather than the standard $5,000 rate.
- Defense officials initially resisted the hike, arguing that premium monthly rates are meant for manned aircraft with continuous connection needs rather than suicide drones that only use the network for brief minutes or hours before exploding.
- The Pentagon ultimately capitulated to SpaceX's demands to support its accelerating bombing campaign against Iranian targets, effectively doubling the operational cost of each low-cost loitering munition from $30,000 to nearly $60,000 per unit.
- Separate pricing disputes also emerged over an experimental "direct-to-cell" Starlink plan to help Iranian civilians bypass state-imposed internet blockouts, with defense officials expressing alarm at SpaceX's proposed $500 million launch fee and $100 million monthly operating cost.
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The US needs Starlink systems in the war against Iran. The SpaceX subsidiary is the world's largest provider of data from space. The company now wants to see more money for its services and thus annoys the US Defense Department.
Pentagon spars with SpaceX over Starlink price hike during Iran war
As U.S. kamikaze drones guided by Elon Musk’s Starlink network began to make visible gains in the war against Iran, senior SpaceX officials reached a conclusion: The Pentagon should be paying more for access to their satellite Wi-Fi network.
In the war against Iran, the US also relies on kamikaze drones controlled by Elon Musk's Starlink network. After their successes, business representatives demand more money from the Pentagon.
Ongoing disputes highlight how the Pentagon's growing dependence on SpaceX is giving Musk greater bargaining power over a critical layer of U.S. national security
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