[HN Gopher] Starlink now over 1M user terminals manufactured
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       Starlink now over 1M user terminals manufactured
        
       Author : mfiguiere
       Score  : 57 points
       Date   : 2022-09-25 19:33 UTC (3 hours ago)
        
 (HTM) web link (twitter.com)
 (TXT) w3m dump (twitter.com)
        
       | retrocryptid wrote:
       | 1m user terminals manufactured and yet we still don't have one 18
       | months after paying for it. (Actually, I canceled my order a year
       | ago. But my brother, who also paid the full $600 still doesn't
       | have his. And they keep delaying it.)
       | 
       | Three years ago we both signed up for a terminal, paid the $100
       | deposit and got on the list. Eighteen months ago I got an email
       | saying I should log in, pay the additional $500 to have the
       | terminal shipped to me. After three months of waiting nothing had
       | shown up. There's no way to contact customer support so I had to
       | ask a friend who works at SpaceX who I should talk to. Two weeks
       | later I got an email from someone I'm guessing is part of their
       | support group saying i was in the queue for delivery in late
       | 2021. Late 2021 comes and goes and no terminal. I ping that same
       | person. Now I'm in the queue for a late 2023 delivery. I ask if I
       | can get a refund, they say yes. They credit my card for the
       | second $500 charge but not the original $100 which they claim is
       | unrefundable.
       | 
       | My brother, the true believer, is still waiting for his terminal
       | and his cybertruck.
       | 
       | I know that Elon is a minor deity on hacker news and peeps are
       | going to downvote the heck out of this comment, but from my
       | perspective, dude's a ripoff artist who survives only because the
       | government is paying for his rockets and ev subsidies.
        
         | completelylegit wrote:
         | It's been my thinking for a while that the majority of people
         | who interface with Musk ventures walk away happy. They must,
         | right? Customers are the most important fans.
         | 
         | But if for some reason one of the cogs in the big machine fails
         | you - you are screwed. There is no real recovery beyond
         | tweeting @ElonMusk on the day once a year has his heart
         | reinserted to legally be considered alive.
         | 
         | I'm sorry to hear your situation - mine was different, more
         | positive.
         | 
         | The line that separates us is one broken cog. Musk customer
         | support is the worst and I'm sorry you can't enjoy what has
         | been a life changing product for me.
         | 
         | Hang in there, it (Musk venture customer service) sometimes
         | gets better.
        
         | kortilla wrote:
         | You're in an oversubscribed area, it's that simple. That's not
         | going to change until they either get more sats up there or
         | people in your area cancel service.
        
           | retrocryptid wrote:
           | If you email me to tell me "pay for your terminal and we'll
           | ship it to you within 2 weeks" and instead of shipping it to
           | me in two weeks you tell me, "thanks for the cash, we decided
           | to send it to you in 18 months," then the problem is not that
           | I'm in an oversubscribed area. The problem is SpaceX is I
           | competent when it comes to basic logistics or is less than
           | truthful regarding its service.
        
           | diebeforei485 wrote:
           | That's fine but he should get a full refund not a partial
           | one.
        
         | retrocryptid wrote:
        
           | throwawaylinux wrote:
           | You're flipping out like this because you got one downvote?
           | Why not do something else for a while if it's upsetting you
           | so much?
        
           | zaptrem wrote:
           | Musk quote: "We specialize at turning the impossible into
           | late."
           | 
           | Personally, I much prefer the latter. I also quite like the
           | transparency that lets us all see into the disorganized mess
           | of it all long before it's ready (as opposed to the Apple
           | strategy of complete silence until announcement day).
        
             | detaro wrote:
             | I'm not sure how constantly promising and missing deadlines
             | while taking peoples money is "transparency".
        
           | [deleted]
        
           | rowanG077 wrote:
           | I think it's more that your comment is needlessly abrasive
           | rather than anything else. And I don't think it's a healthy
           | mindset to say you thrive on toxicity.
        
       | xnx wrote:
       | Would love to see websites start optimizing for low-bandwidth
       | high-latency connections. Page sizes have continue to increase
       | even with the increase in usage of [typically] slower mobile
       | connections, so I'm not holding my breath.
        
         | dj_gitmo wrote:
         | Maybe HTTP/3 with QUIC would help since there are less round
         | trips?
        
       | Stevvo wrote:
       | Not something to be proud of when you have less half a million
       | customers. Literally half the terminals are e-waste because you
       | can't pause service or pass the terminal on to someone else to
       | use.
        
         | pmorici wrote:
         | Your statement is false. You can both pause service and sell
         | the equipment to someone else when you no longer need or want
         | it.
        
           | Stevvo wrote:
           | OK, this was not possible a year ago, but looks like it is
           | now.
        
             | [deleted]
        
       | terafo wrote:
       | I wonder how expensive they are to produce now and have they
       | managed to break even. Gwen Shotwell told the press that their
       | costs were around 1300 with some updated model that was released
       | in early 2021, she said that in April. Since then there was
       | second gen antenna made, that is, I presume, cheaper to produce.
       | And there was leaked email of Musk in late 2021 that was talking
       | about need to get v2 sats working so amount of terminals they are
       | ordering could make sense(email was about their need to fix
       | Raptor 2 production in order to do this). Then they upped their
       | prices in March of this year and IMO this could be a sign of
       | break even point(not sure though).
        
       | Seanambers wrote:
       | If one assumes that all terminals are in use by paying customers
       | @ 110[1] per month that gives 1.3 billion a year in income. Plus
       | 0,5 billion usd for the hardware.
       | 
       | So far there have been 62 Starlink launches - assuming an average
       | price of 67m usd[2] that gives a total launch cost of 4.15
       | billion(real launch cost is lower as SpaceX does it at cost.
       | 
       | Life expectancy of the satellites are between 5 - 7 years so
       | excluding R&D cost I'd say Starlink is already cashflow positive
       | and will generate huge returns in the future. I'm sure there are
       | some commercial / military contracts in the mix which alone will
       | add a couple of B's to the income number.
       | 
       | 1 & 2- https://www.cnbc.com/2022/03/23/spacex-raises-prices-for-
       | lau...
        
         | hef19898 wrote:
         | You forgot on-going operations, maintenance and so on. Also,
         | you assume all terminals are in use and paid for every month.
        
           | Seanambers wrote:
           | Yeah, thats why I started with "If one assumes.." :) But good
           | point, I did not consider overhead and operational costs in
           | this.
        
         | parker_mountain wrote:
         | Your numbers are a bit off, it's sort of safe to assume that
         | maybe half of terminals are operational - not 100%.
         | 
         | > some commercial / military contracts in the mix
         | 
         | T-Mobile is a massive $$$ for them.
         | 
         | I would assume the availability of worldwide, omnipresent,
         | inexpensive low speed broadband is going to open new use-cases
         | (and thus revenue streams), that we're not even aware of. It's
         | going to be exciting.
        
           | chiefalchemist wrote:
           | And speeds will creep up, as they did for phone / cable /
           | fiber / cell.
        
           | karaterobot wrote:
           | > Your numbers are a bit off, it's sort of safe to assume
           | that maybe half of terminals are operational - not 100%.
           | 
           | Wait, why is this? Do you mean that 50% have been produced
           | and not yet sold, or 50% have been sold to people who aren't
           | paying for service? I'd assume a much smaller percentage in
           | either case.
        
             | parker_mountain wrote:
             | OP assumed 100%. I just think that if you're starting above
             | 50%, you're already way off.
             | 
             | The real number is actually way lower, probably.
        
         | jiripospisil wrote:
         | Starlink's prices now take into consideration the buying power
         | of each country. For example, it costs ~$55 in Czechia and ~$41
         | in Hungary.
        
           | tuatoru wrote:
           | Of course SpaceX would use differential pricing.
           | 
           | Once the satellites are up there orbiting, they might as well
           | be earning income for as much of each orbit as they can. Zero
           | marginal cost to do so. So SpaceX's prices in each market
           | will be low enough to be competitive in each market.
           | 
           | The caveat to that is that they're still taking a large loss
           | on each user terminal, so they have to make that back over
           | the expected life of a contract.
        
         | chippiewill wrote:
         | I think the current estimate for the direct cost of reusing a
         | Falcon 9 is at most $30m and potentially as low as $15m
         | (there's a lot of fixed costs so getting a "true" price for
         | this would be hard even if you had access to the same data
         | SpaceX does).
        
       | leke wrote:
       | Lol, I read the headline as...
       | 
       | Starlink now over. 1M user terminals manufunctioned.
        
       | gordon_freeman wrote:
       | Starlink is definitely filling the niche market of providing
       | internet connectivity in rural and sparsely populated areas where
       | firms with traditional business models with fiber-optics based
       | network are not incentivized to provide. The real question is:
       | will Starlink become profitable by in turn finding a big enough
       | market itself to be able to cover the Billions of dollars of cost
       | of manufacturing, launching and maintaining these satellites?
       | Elon Musk seems to be open to separate Starlink business from
       | SpaceX and list it publicly in future (he tweeted something in
       | that regard previously [1]) so it seems like he definitely thinks
       | Starlink can become a profitable business in near future.
       | 
       | [1] https://www.cnbc.com/2022/06/07/spacex-starlink-ipo-elon-
       | mus...
        
         | hef19898 wrote:
         | Or a great way to get additional SpaceX funding througha
         | Starlink spin-off.
        
         | supernovae wrote:
         | I thought the move to do midband mobile spectrum with t-mobile
         | and offer line of site coverage across 100% of the country was
         | a pretty big move. Existing phones can be enabled on this
         | spectrum. I also see it being leveraged well for edge services
         | where classical 5g towers are just too damn expensive to pout
         | out that far
        
           | justapassenger wrote:
           | You do realize that in terms of speed it makes 2G look like a
           | dream?
           | 
           | It's only good for emergencies.
           | 
           | And anyway it was mostly just a publicity stunt, announcing
           | non existing feature (no satellites in orbit are able to do
           | it) to preempt Apple by few days, and them rolling out
           | working product this year.
        
             | cma wrote:
             | "The public tends to respond to precedents and
             | superlatives," is one of his main quotes. At some point I
             | think he figured out it doesn't even need to be released
             | first to get the precedent credit.
        
               | justapassenger wrote:
               | Or released at all. Elon does a lot of cool stuff but
               | generates even more vaporware.
        
         | seltzered_ wrote:
         | I hope those dreaming of this consider theres knowledgeable
         | engineers and astronomers that think their growth plans are an
         | ecological disaster:
         | https://twitter.com/mxshift/status/1563561387649298432
         | 
         | (Edited my comment from initially having a more polarizing
         | tone.)
        
           | kortilla wrote:
           | Sounds a bit daft when you realize that's a drop in the
           | bucket compared to the amount of crap deposited by meteors .
        
           | brtkdotse wrote:
           | I read an opinion piece somewhere that Starlink is just busy
           | work to keep SpaceX launching rockets, but because _gestures
           | at Google_ I can't find it. This Twitter thread nakes this
           | theory plausible.
        
             | WHATDOESIT wrote:
             | Wasn't that exactly the plan publicized by Musk?
        
             | londons_explore wrote:
             | It's more that the launches can only be cheap _if_ they are
             | launched regularly.
             | 
             | If you aren't launching every week, then the costs of those
             | staff start to dominate, and the staff aren't paid less if
             | you launch fewer rockets.
        
             | wmf wrote:
             | It doesn't make sense to lose money on every rocket launch
             | but make it up in volume. It's more accurate to say that
             | reusable rockets and a LEO satellite constellation can form
             | a mutually-reinforcing flywheel that will lower costs for
             | the eventual Martian fleet.
        
             | aardvarkr wrote:
             | Why can't it be both? It absorbs excess capacity, allowing
             | spacex to expand their capacity and achieve economies of
             | scale that are unmatched in the modern world of rocketry
             | while also setting up an exciting new revenue stream that
             | will move them away from relying on government contracts.
             | It also helps them win support from republicans as it
             | serves rural communities and is an example of business
             | innovation that the GOP can support which should help them
             | win more govt contracts. Lots of win-win-win opportunities
             | here
        
             | modeless wrote:
             | Starlink is absolutely a way to keep SpaceX launching
             | rockets, but that doesn't make it busywork. It's
             | revolutionary and immensely valuable.
             | 
             | And, any theorized environmental impact has to be compared
             | to the existing natural process of space dust falling into
             | the atmosphere, and measured against the saved costs
             | worldwide of wires and cell towers and travel not needed,
             | especially as capacity increases in the future. Which is
             | practically impossible to measure, but failing to account
             | for difficult-to-measure costs is a classic error people
             | make when evaluating things like this. And of course
             | there's the extra benefits of coverage over oceans and
             | poles and to ships and planes that you can't get any other
             | way.
        
           | pmorici wrote:
           | This guys thread will almost certainly be wrong and look
           | stupid in the long term. Pessimistic predictions sound smart
           | in the present because with anything new it's hard to know
           | how it will play out. Long term though any early issues with
           | new technology tend to be optimized or solved as things
           | evolve.
        
             | tuatoru wrote:
             | I didn't see much of it (I don't have a twitter account),
             | but what I did see already had distortions.
             | 
             | "Black carbon": starship uses methane, very little black
             | carbon produced.
             | 
             | 5000 tons of aluminum in the atmosphere is trivial compared
             | to meteorite dust.
        
             | patmcc wrote:
             | >>Long term though any early issues with new technology
             | tend to be optimized or solved as things evolve.
             | 
             | I'm absolutely, completely, utterly sure someone said this
             | about the first fossil fuel technologies. "Oh, I'm sure
             | this 'pollution' thing will be solved."
        
               | rowanG077 wrote:
               | And the jury is still out on whether he will be right or
               | wrong.
        
               | throwaway98797 wrote:
               | are you implying that it would have been better if we
               | delayed or never used fossil fuels?
        
               | cavisne wrote:
               | #candlesforall
        
               | throwaway787544 wrote:
        
           | bilsbie wrote:
           | Lobsters pulling each other back into the pot.
        
             | retrocryptid wrote:
             | I have no idea what this is in reference to, but I love the
             | cut of your internet commenting jib.
        
               | tuatoru wrote:
               | The usual form of the metaphor is "a crab bucket".
               | 
               | The mental image this is meant to evoke is that if one
               | crab attempts to escape the bucket by climbing the side,
               | then others will grab it, and their weight will pull it
               | back down. So no crab escapes the bucket.
               | 
               | A metaphor for unconstructive criticism or obstruction
               | that squashes attempts at betterment.
        
               | bilsbie wrote:
               | Thanks.
               | 
               | If it needs explaining I meant this guy is worried about
               | a few 1000 tons of space debris versus the certain
               | eventual end of the species if we don't become
               | spacefaring.
        
       | naveen99 wrote:
       | You don't need to go rural or sparsely populated for low cost
       | living... places like india have low cost housing, food,
       | internet, and labor. I would think the market for internet in
       | sparsely populated areas is by definition negligible.
       | 
       | But, if all cell phones can access starlink in cell phone dead
       | zones, that might make it economically viable, as the market
       | expands to 5 billion plus users.
        
         | chiefalchemist wrote:
         | Perhaps. But another way to look at it is, now you could live
         | _anywhere_. Pardon the cliche but Starlink might a game
         | changer, a paradigm shift. I don 't disagree with you per se.
         | But in this case the future might be different than the past.
         | We'll have to wait and see.
        
         | justapassenger wrote:
         | You sound like someone who did many pitches to VC.
         | 
         | "Everyone on earth breathes, so our market for oxygen bars is 8
         | billion plus users".
         | 
         | Profitability of dead zones (especially with speeds lower than
         | 2G) is not exactly high. There's reason why they're dead zones
         | in the first place.
        
           | bumbledraven wrote:
           | The profitability of the placing and maintaining physical
           | network infrastructure (cell towers etc) in "dead zones" is
           | low. The profitability of covering many "dead zones" with a
           | single orbit may be different.
        
         | seizethecheese wrote:
         | That's some funky reasoning. Most Americans will not move
         | overseas to get lower cost of living, so rural areas are a good
         | substitute. Likewise, cost is not the only consideration, also
         | quiet and privacy.
        
         | tuatoru wrote:
         | The world is around 60% urbanized, so there are still 3 billion
         | people in rural areas. Quite a stretch to call that number
         | negligible.
        
       | NelsonMinar wrote:
       | Related: Starlink Speeds Drop Significantly in the US Amid
       | Congestion Woes
       | 
       | https://www.pcmag.com/news/starlink-speeds-drop-significantl...
        
         | simondotau wrote:
         | Because it is not intended for dense populated areas. The point
         | of Starlink is to serve the underserved.
        
           | justapassenger wrote:
           | Totally. But revenue and profit expectations don't align with
           | it.
        
             | simondotau wrote:
             | Underserved areas are like 98% of the earth's surface and
             | include some rather wealthy entities like airlines,
             | shipping/logistics, mining and resources, cruise liners,
             | billionaire's yachts, and of course governments of
             | small/island countries.
        
               | justapassenger wrote:
               | And all of that adds to maybe 100k customers. What next?
               | Especially for a service that has scale bandwidth
               | everywhere across the world, it increase it in one spot
               | (or add 5G tower there, which you can just do, without
               | this whole "10k satellites that have to be replaced every
               | few years" business).
               | 
               | I'm not saying there's no market. But it's very limited.
               | Much more limited compared to all the hype it's getting.
               | I had literally people living in SF telling me how
               | they'll use it, to stop dealing with Comcast.
        
         | anonporridge wrote:
         | Surprising absolutely no one who understands networking.
         | 
         | The ludicrously high speeds that were praised during the
         | limited beta really seem like they were designed to be a bait
         | and switch to get people on board with completely unrealistic
         | expectations for a full fledged satellite internet service.
        
           | jackmott wrote:
        
           | NelsonMinar wrote:
           | It seems to be surprising Starlink; they're still telling
           | customers they should expect speeds far above what we're
           | getting in practice. Their service description is a fiction.
           | 
           | https://www.starlink.com/legal/documents/DOC-1002-69942-69?r.
           | ..
        
             | ceejayoz wrote:
             | > they're still telling customers they should expect speeds
             | far above what we're getting in practice
             | 
             | That's Musk's MO, isn't it? "Full self driving", Mars by
             | 2022...
             | 
             | They certainly do some genuinely cool stuff, but meeting
             | promises like this isn't one of them.
        
         | chrisco255 wrote:
         | I'm a Starlink customer. I regularly get 100+ mbps in Austin,
         | TX and have not noticed any speed drops. If anything, it's
         | gotten more consistently fast.
        
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