Elon Musk’s SpaceX had reportedly requested a price hike from the Pentagon for the use of its Starlink network during the Iran war, leading to tensions between the two.
Senior officials from SpaceX have claimed that the Pentagon has been undercompensating for their satellite Wi-Fi network connection, which plays a key role in guiding U.S. kamikaze drones, reported Reuters on Tuesday.
The military had been shelling out around $5,000 per terminal, while the service they were availing was valued closer to $25,000, as per Reuters’ sources and Pentagon documents.
The disagreement is centered on the use of Starlink on LUCAS suicide drones, a cost-effective U.S. model comparable to Iran’s Shahed. The Pentagon and SpaceX also differ on the pricing for a plan to provide direct-to-cell connections with Starlink, similar to 5G service, to assist Iranian citizens in circumventing government-imposed communication blackouts.
Despite the Pentagon’s objections, it eventually conceded to SpaceX’s proposed price increase, nearly doubling the cost of each LUCAS drone. The Pentagon is now exploring other competitors, but currently, no other company provides a comparable alternative to Starlink.
