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The Internet Space

Elon Musk Says SpaceX's Starlink Achieves Breakeven Cash Flow (cnbc.com) 155

There's now two million subscribers to SpaceX's Starlink satellite internet service, with CEO Elon Musk announcing Thursday that it has "achieved breakeven cash flow..."

Long-time Slashdot reader SonicSpike shared this report from CNBC: Musk did not specify whether that milestone was hit on an operating basis or for a specified time period. Earlier this year, SpaceX President and Chief Operating Officer Gwynne Shotwell said Starlink "had a cash flow positive quarter" in 2022, and the overall SpaceX company reportedly turned a profit in the first quarter of 2023.

SpaceX's valuation has soared to about $150 billion, with Starlink seen as a key economic driver of the company's goals. Two years ago, Musk emphasized that making Starlink "financially viable" required crossing "through a deep chasm of negative cash flow."

Musk has discussed spinning off Starlink to take it public through an initial public offering once the business was "in a smooth sailing situation." But timing of a Starlink IPO remains uncertain. Last year, Musk told employees that taking the business public wasn't likely until 2025 or later.

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Elon Musk Says SpaceX's Starlink Achieves Breakeven Cash Flow

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  • Obviously there is a need for global IP access in general but I didn't realize enough of the paying world has shitty enough local net that paying for Starlink made sense in enough cars for them to become profitable.

    Well, congrats to them but I do wonder who it is that's paying that much and how much is just the government buying up customer data.

    • Have you been to the world?
    • by jfdavis668 ( 1414919 ) on Monday November 06, 2023 @08:04AM (#63983988)
      Well, there are enough potential customers for multiple companies to launch satellites constellations. OneWeb, SpaceX, Amazon and others. I have mostly seen Starlinks on RVs, but I know they are now on planes and ships. I'm sure island communities are big users.
      • Ah, ok, that makes sense. Thanks.

      • by beelsebob ( 529313 ) on Monday November 06, 2023 @08:20AM (#63984030)

        You donâ(TM)t even need to get to island communities for it to be useful. There are plenty of places in mainland western countries that are just too sparsely populated for decent internet to get there.

        The highlands of Scotland, pretty much anywhere in the area between Seattle, and Salt Lake City, absolutely anywhere in Australia that isnâ(TM)t a major cityâ¦

        • by adnoid ( 22293 )

          The outfit I work with now is a customer. Right in the heart of Los Angeles, you can see the high rises downtown standing in the parking lot. Right about at the I5/I710 interchange, in case you know the area.

          The building is a temporary location, with 13 units (Commercial condominium). When it was built, none of the providers ran anything to the building, making it an unserved island in the area. As a result the choices we faced when we moved in were cellular (cheap, unusably bad signal strength, we trie

      • I'm sure island communities are big users.

        Islands don't benefit from Starlink as much as you might expect, not yet, not unless there is a bigger and more-populated landmass nearby. The problem is that Starlink only works if a satellite is within range of a user's dish and a downlink station at the same time, and that downlink has to be located somewhere it can get a terrestrial network connection.

        This is changing slowly as the number of V2 satellites rise. V2s have lasers for satellite-to-satellite links that route data to one that has a downlink

        • by NFN_NLN ( 633283 )

          > The problem is that Starlink only works if a satellite is within range of a user's dish and a downlink station at the same time

          Is that a hard requirement or just a best practice?

          I thought the satellites could relay traffic to one another. Obviously you would want to limit intra-satellite communication to minimize bandwidth. Therefore if a user and base station are in the same zone the problem is solved. However, in the case of an isolated island where there is no other option, can't they relay the s

          • > The problem is that Starlink only works if a satellite is within range of a user's dish and a downlink station at the same time

            Is that a hard requirement or just a best practice?

            I thought the satellites could relay traffic to one another.

            Your questions are answered by the post you replied to, just read the whole thing.

    • Never forget the dirty way SpaceX stole Starlink. See my other comment on this article for context.

      • by ichthus ( 72442 ) on Monday November 06, 2023 @08:28AM (#63984052) Homepage
        Looking at your other comments, it seems Elon's been living in your head rent free.
        • by BigFire ( 13822 )

          Elon Musk stole his tricycle 30 years ago.

        • And regularly wields that power. He purchased one of the biggest social media websites on the planet and is in the process of running it into the ground while filling it with right-wing extremists. You can argue if you think that's a good thing or a bad thing but it's a thing he did. He also routinely takes measures to prevent high-speed rail from taking off in America. And he's a well-known Union buster.

          You might think these are good things if you're on the far end of the right wing but if you're not t
      • Let us not forget the billions of taxpayer money [businessinsider.com] Musk has taken to keep his companies afloat, while at the same time whining about government handouts and subsidies.

        Even while he forced his failing company to stay open during covid and hundreds of his people were out with the virus, he took millions in government money while saying people shouldn't receive a penny.

        He's a typical grifter.
        • Hilarious. It's perfectly possible to be against something while acknowledging that your competition will take advantage of it if you don't. It then becomes a political thing, not a business thing.
    • Dude, outside of cities, the internet sucks. Most places get something like 30 down/10 up. Starlink far outperforms that.

      Around here, the biggest problem is that starlink is not priced for the market. £25 a month gets you that 30/10. Or £75 a month plus £500 down to get Starlink. Yes, Starlink is faster, but not faster enough to justify triple the price.

      • Around here, the biggest problem is that starlink is not priced for the market.

        You're probably right that Starlink isn't priced for your local market. It's priced for other local markets where the alternatives are geostationary satellite (with its harsh monthly caps and far longer pings) and cellular (also harshly capped). Or it's priced for other local markets where the cable company holds a monopoly because there's no FTTH competitor.

      • For that matter, at £75 you could just buy 3 of those terrestrial links, have way more consistent speed, and not have to worry about trees in your skyline. You might get 100Mbps or 150Mbps on Starlink but once every DSL user signs up you no longer get that. Low earth satellite Internet is just a really big cell network where the towers move instead of the phones. Once your "tower" is full, speeds start to suffer.

      • Dude, outside of cities, the internet sucks. Most places get something like 30 down/10 up.

        It's not just the speed. It's the latency. Stuff like Hughesnet is absolutely horrible. Average latency around 680ms.

      • i live in rural western oregon, and up until we were able to get fiber -- starlink was heads and shoulders above the competition (i'm still surprised they ran fiber all the way out here, there's no way it can be economically viable given the prices they're charging and the population density, but not going to omplain)
        That said, our options were limited to:
        viasat (vilesat): $175 a month, 100 gig cap, 600ms latency ( best case), frequent throttling, horrible performance in inclement weather. LoS to sat would

    • Re: (Score:2, Troll)

      The Pentagon, re-selling to Ukraine.

    • "Obviously there is a need for global IP access in general but I didn't realize enough of the paying world has shitty enough local net "

      There lots of places without any net, the poles, the pampas, the tundra, the deserts, the jungles, the off-grid community, the campers, the boaters, the fishermen, ferries, cruise-ships....

    • I can think of a lot of potential uses. The big one (commercially) would be fleet communications. Pretty much any large company with a fleet of vehicles has a system for communicating with the vehicles, but it either depends on cell networks or uses a slower satellite system. Cell networks are non-existent in much of the country and definitely bad in the mountains.

      I used to work for a company that provided remote health care to people who couldn't get in to the clinics. We mostly dealt with the VA providing

      • by Guspaz ( 556486 )

        How much bandwidth do fleet vehicles really need, and how up to date does it really have to be? If it's just sending back telemetry, that should be quite low bandwidth and tolerant of queueing up deal with dropouts, and probably within the capabilities of the direct-to-cellular Starlink service, which will be a lot easier to work with than the full phased array antenna setup.

  • "Subscribers" is a plural noun.

    That means the state-of-being verb you're contracting should be "are," not "is" - which, in turn, means that sentence should read "There're near two million subscribers to SpaceX's Starlink satellite internet service, with CEO Elon Musk announcing Thursday that it has "achieved breakeven cash flow..."

    I'm not one of your haters, but, c'mon. This is grade school grammar you're dealing with. It's simply not all that difficult to get it right ...

    • I'm doubtful that the verb form used with "there is" would be covered in grade-school grammar; it's a very peculiar construction in English, where the subject comes last and determines the copula verb form.

      Cambridge grammar states that "there are" is technically correct, but "there is" is commonly used:

      In speaking and in some informal writing, we use there’s even when it refers to more than one. This use could be considered incorrect in formal writing or in an examination:
      There’s three other people who are still to come.
      There’s lots of cars in the car park.

      https://dictionary.cambridge.o... [cambridge.org]

      • by dgatwood ( 11270 )

        I'm doubtful that the verb form used with "there is" would be covered in grade-school grammar; it's a very peculiar construction in English, where the subject comes last and determines the copula verb form.

        It's actually taught in second grade [k5learning.com].

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