Musk wants to decrease the initial cost of Starlink internet service

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Next-generation terminals might cost less



Elon Musk at MWC

Elon Musk’s Starlink aims to provide internet via low-orbit satellites that connect with receivers on Earth. As it stands right now, these receivers, or terminals to be exact, are rather expensive. The hardware is currently priced at $649 CAD with additional shipping and taxes that costs $65 and $92, respectively.

While Musk’s ambitious offering is available in numerous regions across Canada, its high initial cost prevents it from being adopted on a larger scale, but that might change in the near future.

During a discussion at MWC 2021, Musk stated that Starlink is attempting to reduce the price of its user terminal from $500 (about $621 CAD) to $250 (roughly $310 CAD).

“Over time, we’d like to reduce the terminal cost from $500 to, I don’t know, $300 or $250, or something like that,” said Musk.

Lowering Starlink terminal cost, which may sound rather pedestrian, is actually our most difficult technical challenge

— Elon Musk (@elonmusk) November 3, 2020

Additionally, Musk stated that with the sale of each terminal, the company is losing money. According to Musk, each terminal costs the company more than $1,000 USD (about $1,238 CAD).

“We obviously are subsidizing the cost of the terminal,” said Musk. “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 says Starlink will reach customers around most of the world by the end of 2021 and that the company expects to have global coverage by next year.

Via: Ars Technica

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