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Elon Musk's SpaceX Asks US Govt To Pay For Starlink Services To Ukraine, Says Costs Nearing $100 Million

Elon Musk has provided his satellite-based Starlink internet service to Ukraine since the beginning of the Russian invasion. It has helped Ukraine stay connected on the battlefield and fend off the Russians.

Outlook Web Desk

Updated on: 15 October 2022 11:44 am

Elon Musk

Elon Musk's satellite-based Starlink internet service has been a bane for Ukraine in the eight-month-long war but the future is uncertain.

Musk has asked the US Department of Defence (DoD) to fund Starling terminals and costs of services provided, so that Ukraine may continue to have access.

As ground-based internet and communication infrastructure is at risk of damage from missile strike, satellite-based Starlink has come to Ukraine's rescue. The antenna-sized terminals received internet being beamed on Earth from Starlink satellites in space. Since Ukraine began receiving these terminals and associated services in the early days of the War, Sarlink has been a mainstay of the Ukrainian military and civilian organisations engaged in war efforts.

However, that's at risk now as Musk says SpaceX —which operates Starlink— says it's burning too much cash in Ukraine and future costs are set to rise sharply. The anger at Musk within Ukraine over a peace plan he proposed has also complicated the situation.

What's Starklink, how has it helped Ukraine?

Starlink terminals are portable antenna-sized devices that receive internet services beamed from satellites in the space.

Russia has frequently targeted critical infrastructure of Ukraine. As conventional broadband and cellular internet services require ground-based infrastructure, such as telecommunication towers, telephone exchanges, and wires, they are at risk of being damaged in Russian attacks. ?

The satellite-based Starlink internet services removes this ground-based infrastructure. Therefore, it's partially immune to being damaged by Russians.

The Starlink internet services have provided Russian military as well as non-governmental organisations working in relief and rescue operations a way to stay connected. It has become the mainstay of Ukrainian forces, who use it for battlefield communication, operating drones to target Russians, and for other military operational purposes.?

Rising costs becoming issue for SpaceX

SpaceX has incurred a cost of $80 million so far for providing Starlink internet services in Ukraine, according to Musk.

Musk has further said that costs are expected to rise to $100 million by the end of the year and it's expected to become $20 million a month soon.

In the next 12 months, SpaceX says it would cost $400 million to keep Starlink services running in Ukraine, according to CNN.?

Musk on Twitter said that only a "small percentage" of Starlink terminals provided to Ukraine have been paid for.?

Bad reporting by FT. This article falsely claims that Starlink terminals & service were paid for, when only a small percentage have been.

This operation has cost SpaceX $80M & will exceed $100M by end of year.

As for what’s happening on the battlefield, that’s classified.
— Elon Musk (@elonmusk) October 7, 2022

CNN reported, citing SpaceX's communication with US DoD, that SpaceX has so far provided around 20,000 Starlink terminals to Ukraine. It requested the US government to take over the funding of the services. It further reported that these terminals were partially funded by the United States and others.

"Early US support for Starlink came via the United States Agency for International Development [approximately $3 million]...The largest single contributor of terminals, according to the newly obtained documents, is Poland with payment for almost 9,000 individual terminals. The US has provided almost 1,700 terminals. Other contributors include the UK, NGOs and crowdfunding," reported CNN.

However, terminals are just a small part of the costs going into keeping Starlink services operational in Ukraine. SpaceX says it has incurred up to 70 per cent of services costs so far.

"In addition to terminals, we have to create, launch, maintain, and replenish satellites and ground stations and pay telcos for access to internet via gateways. We have also had to defend against cyberattacks and jamming, which are getting harder. Burn is approaching approximately $20 million a month,"said Musk on Twitter.

It has been reported that SpaceX has prevented a Russian electromagnetic attack in Ukraine by Russia.

Ukraine miffed at Musk's peace plan

Sections of Ukraine, commoners and officials alike, are miffed at Musk for proposing a peace plan that would involve Ukraine ceding territory to Russia.

Musk on October 3 laid out his peace plan:

Redo elections of annexed regions under United Nations supervision. Russia leaves if that is will of the people.
Crimea formally part of Russia, as it has been since 1783 (until Khrushchev’s mistake).
Water supply to Crimea assured.
Ukraine remains neutral.

This has been criticised by those who are not overtly criticising Musk, particularly over getting the history of Crimea wrong.?

Following this plan's publication, a senior Ukrainian diplomat asked Musk to "f**k off".?