[HN Gopher] 1,300 SpaceX satellite units went offline over fundi...
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       1,300 SpaceX satellite units went offline over funding issues
        
       Author : mzs
       Score  : 37 points
       Date   : 2022-11-04 19:30 UTC (3 hours ago)
        
 (HTM) web link (www.cnn.com)
 (TXT) w3m dump (www.cnn.com)
        
       | partiallypro wrote:
       | I want SpaceX to continue to help Ukraine (and I loathed Elon's
       | public crying about it), but I think it's a bit much to ask a
       | private company to just eat the costs and not complain,
       | especially when I don't think SpaceX has a lot of cash on hand.
       | Hopefully there is a remedy, and this can quickly be resolved.
       | $400M just today was added to aid to Ukraine, you'd think SpaceX
       | and NATO/DoD could strike a deal, especially if these have been
       | valuable battlefield tools.
        
         | supercanuck wrote:
         | >Nobody is asking them to "eat the costs"
         | 
         | "Negotiations are very much underway. Everyone in our building
         | knows we're going to pay them," the senior Pentagon official
         | told CNN, adding that the department is eager to have
         | commitments in writing "because we worry he'll change his
         | mind."
        
         | lgg wrote:
         | Agreed, but I don't understand the cost structure at all. Basic
         | Starlink service in the US is $110 a month, and all these
         | quotes are for service fees in Ukraine are on the order of
         | $2500-$4500 a month. I totally get that deploying into another
         | country (and a war zone at that) may have some structurally
         | higher costs due to currency conversions and extra support, but
         | 20-40x seems absurd.
         | 
         | I would love to have some explain to me why I am wrong, but
         | this seems like war profiteering to me.
        
           | fragmede wrote:
           | how about 20-40x for 20-40x the traffic? streaming Netflix
           | all day long isn't the same thing, bandwidth-wise as
           | supporting an entire military base. Comcast gets to charge
           | different rates for home vs business, it seems military
           | traffic which runs at a higher priority than business class
           | should be straightforwards to charge more for. We can
           | disagree over the exact price to charge but the different QOS
           | seems justified.
        
           | patd wrote:
           | There are multiple tiers to Starlink (residential, RV, boat,
           | plane, ...). I don't think Ukraine gets the most basic plan
           | with limited bandwidth and meant for stationary dishes.
           | 
           | If I understood correctly some are used as a backbone for
           | their internet infrastructure and some on the field on moving
           | vehicles. The $110 plan wouldn't cover those use cases.
        
         | dkjaudyeqooe wrote:
         | What is odd is that it's obvious the Pentagon will pay the
         | costs (given their military utility) but instead of quietly
         | reaching out to them Musk made a public complaint, then
         | withdrew it, claiming he'll pay.
         | 
         | It's really difficult to figure out what's going though his
         | head.
        
           | mananaysiempre wrote:
           | Seems to have worked fine to make the Pentagon anxious to get
           | the negotiation done rather than sit on the whole thing for
           | as long as humanly possible (what I'd expect as a default
           | from a bureaucracy of that size):
           | 
           | > "Negotiations are very much underway. Everyone in our
           | building knows we're going to pay [SpaceX]," the senior
           | Pentagon official told CNN, adding that the department is
           | eager to have commitments in writing "because we worry
           | [Musk]'ll change his mind."
           | 
           | Whether this was a deliberate negotiation strategy or a
           | simple case of Musk being Musk in public, I can't tell.
        
             | dkjaudyeqooe wrote:
             | I think him telling the military he doesn't want to pay for
             | it anymore privately would have done the job. It's not like
             | they're short of cash, $44 billion has been allocated to
             | UA's defense.
        
         | mikeyouse wrote:
         | I have no opposition whatsoever to paying for Starlink service
         | - but how much can service actually cost? Transit for a few
         | terabytes of data must be on the order of dollars per day. I
         | guess if the terminal sales price was greatly marked down and
         | they intend to make the rest up on service charges -- even
         | then, this is more of an "opportunity cost" than an actual
         | cost, no?
        
           | realgeniushere wrote:
           | Opportunity cost is no less real than other kinds of costs.
           | If not for the cost, their bank account would have a higher
           | number in it.
        
             | mikeyouse wrote:
             | It's explicitly a less real type of cost.
             | 
             | If you have a bank account with $100 in it, a $10 daily
             | expense will deplete your account in 10 days. A $10 daily
             | opportunity cost would never deplete your account.
        
               | indecisive_user wrote:
               | >A $10 daily opportunity cost would never deplete your
               | account
               | 
               | Well that's assuming you have no expenses. In your
               | example the difference between realizing the opportunity
               | cost or not is the difference between 10 days of runway
               | and paying the bills in perpetuity.
               | 
               | Bills pile up no matter what, so there's only a limited
               | amount of opportunity cost you can afford to eat.
        
       | greatgib wrote:
       | Can someone explain to me why Ukrainians have to pay 2500 to
       | 4500$ in monthly fee while normal consumers of the service are
       | normally only paying around 100$?
        
         | aaron695 wrote:
        
         | killingtime74 wrote:
         | Private companies will charge whatever they can. I never
         | understood why people seek justification for a certain price.
         | The bargaining power imbalance is plain to see.
         | 
         | When starlink charges you $100 it's because where it does so it
         | has competitors that charge at that level. (Pendants will
         | challenge this). In Australia where starlink is the superior
         | satellite service there is an inferior NBN service and various
         | mobile services if you can get signal. In Ukraine what do the
         | alternatives charge that have consistent service?
        
           | ROTMetro wrote:
           | So war profiteering then? Since Ukraine HAD alternatives pre-
           | war, then your model only applies because they can get away
           | with it in a war zone.
           | 
           | If I own the only gas station with gas after a hurricane or
           | earthquake, I should be able to raise my rates to whatever I
           | want?
        
             | killingtime74 wrote:
             | Is not my model it's an observation. If you don't raise
             | prices after hurricane or earthquake you run out, which is
             | what usually happens. This is what happened at the start of
             | COVID with masks and hand sanitizer. It is profiteering.
             | Read your country's local news to see if anything was done
             | about it at the time, in mine nothing was.
        
             | smileysteve wrote:
             | Many governments (especially states in the U.S) have anti
             | price gouging laws.
        
               | killingtime74 wrote:
               | So does mine (Australian). However during covid we didn't
               | see much actual enforcement
        
             | celestialcheese wrote:
             | What network alternatives do they have in the combat zones?
             | My understanding was that communication infra was taken
             | offline in the first few weeks of the war.
        
               | ROTMetro wrote:
               | Pre-war there were alternatives. The only reason for
               | scarcity is the war, hence it being war profiteering.
        
             | mensetmanusman wrote:
             | Not necessarily, having security resources to counter
             | Russian attempts at civilian bombings is expensive from an
             | opportunity cost standpoint.
        
             | Animatronio wrote:
             | It's only $20 mil. If I remember correctly Raytheon was
             | awarded a $182 mil contract to develop 2x NASAMS for
             | Ukraine. Just ask them for a slight price cut and voila,
             | money for SpaceX.
        
           | warbler73 wrote:
           | Satellites cost a lot to operate and UA is using significant
           | bandwidth for these satellites. SpaceX is not a charity.
        
             | thot_experiment wrote:
             | What is the operational cost of a satellite? It's all
             | upfront cost, there is no operational cost other than
             | running uplink stations/bandwidth on the ground. Is there
             | really significant opportunity cost for Spacex here? I
             | fucking doubt it, the starlink satellites serve relatively
             | small geographic areas. I very much doubt that satellites
             | over the Donbass are in a position where they are not
             | making money because all the traffic that would otherwise
             | be paid for by a bunch of people is being clobbered by
             | priority UA mil packets. I also can't imagine that the
             | entire UA military is particularly significant on the
             | backbone end of things when you have large metros etc mixed
             | in, it just doesn't line up for me.
        
               | celestialcheese wrote:
               | LEO sats have a lifespan (5 years IIRC), so you have to
               | constantly refresh your constellation with new launches
               | and sats. These launch and replacement costs will drop
               | over time, but they aren't trivial.
               | 
               | Don't get me wrong, it's an incredible business, but
               | there are real operating costs to keeping the network
               | alive.
        
               | thot_experiment wrote:
               | As mentioned in the other comment and the parent,
               | Ukrainian wartime demand is not relevant to that side of
               | the business, there aren't satellites that are deployed
               | specifically to serve Ukraine and I am _informed
               | guessing_ that there is no aspect of the network that is
               | actually degraded in a customer-losing sense, and while
               | there may be greater bandwidth costs I am unconvinced
               | that the total cost to Spacex is particularly high.
               | 
               | (fwiw it would be chill of the US government to pitch
               | them some money for the actual cost imo, but i think the
               | actual cost to spacex (real and opportunity) is likely
               | much smaller than the numbers being bandied about here)
        
               | mensetmanusman wrote:
               | "It's all upfront cost, there is no operational cost
               | other than running uplink stations/bandwidth on the
               | ground."
               | 
               | Heh.
               | 
               | The thought that there is no overhead to such a complex
               | system that is designed to continually fall out of they
               | sky and self destruct every couple years.
        
               | thot_experiment wrote:
               | They don't deploy satellites to serve Ukraine, they need
               | those satellites anyway to run the constellation. Ukraine
               | wartime use has no impact on this side of the equation.
        
               | smileysteve wrote:
               | It could rephrased as there is no marginal cost per bit
               | assuming the bandwidth isn't saturated and no additional
               | coverage area over other business operations is being
               | offered.
        
         | MichaelZuo wrote:
         | I've heard it's a combination of
         | 
         | 1. Usage patterns being way different from normal customers,
         | i.e. at max capacity nearly 24/7, whereas regular customers can
         | be oversubscribed by as much as 50 to 1.
         | 
         | 2. Cyberattacks requiring enormous effort to mitigate or block
         | 
         | 3. More stringent and demanding requirements for customer
         | support, etc., because of the military application.
         | 
         | Though on the other hand there should be economies of scale
         | somewhere here, so 50x greater usage likely isn't a linear 50x
         | increase in cost.
        
           | viraptor wrote:
           | In not sure why cyberattacks would affect the price. For ISPs
           | this is expected to be a dumb pipe. They don't care about the
           | contents, just the volume. (ok, they kinda do, but not at a
           | security level, they're happy for you to be pwned) But DoS
           | protection shouldn't cost that much - you need the capacity
           | to mitigate whether it happens or not. The cost of actually
           | receiving that traffic shouldn't be 100x the normal price.
        
           | CommieBobDole wrote:
           | >max capacity nearly 24/7
           | 
           | At some point during this whole thing, Musk tweeted a
           | bandwidth usage graph that showed that all of the Starlink
           | units combined (many thousands of them) were using a total of
           | 7TB a day. Which is a minuscule amount of data and wouldn't
           | be much of an issue even if it was for a single unit.
           | 
           | I got the impression that they were turning on the super
           | expensive max unrestricted service (which has no incremental
           | cost over the regular service) then pretending that the price
           | of the service times the number of units was money that they
           | were losing every month.
        
             | MichaelZuo wrote:
             | That 7TB figure seems pretty low for several thousand
             | terminals over 24 hours, do you have a link to the numbers?
        
               | CommieBobDole wrote:
               | https://twitter.com/elonmusk/status/1580572380535001088
               | 
               | Looking at the graph, it looks like it's from May, so I
               | don't know what it looks like today. But I think most of
               | the terminals were in place by then.
        
           | bioemerl wrote:
           | 4. Big money gets big bill. US government has big money.
        
         | iam-TJ wrote:
         | It is based on the higher performance of "Starlink Business"
         | [0] that has more performant hardware, increased throughput,
         | priority, and support and which, in the U.K., is billed at "...
         | PS400/mo for service and PS2,410 for hardware." It presumably
         | also has to be a hybrid with the roaming services such as RV
         | and Marine which may imply having to dynamically adjust
         | satellite and ground-link paths. With the number of terminals
         | in operation inside UA it is also possible there is a dedicated
         | ground station in, or close to, Ukraine which would also assure
         | very low latencies.
         | 
         | As others have said, the demands of military use probably
         | require 24/7 dedicated support and monitoring with real-time
         | threat detection and evasion from skilled engineers at
         | SpaceX/Starlink and actively monitoring the satellites passing
         | over Ukraine, Russia, and Belarus.
         | 
         | [0] https://www.starlink.com/business
        
       | wilg wrote:
       | Someone on Reddit suggested that these are specific units that
       | were acquired through a third party or something weird:
       | 
       | > Reading the article: what seems to have happened is that
       | Ukrainian government bought a batch of 1300 Starlink units from
       | some private company in UK, had them shipped to Ukraine and
       | distributed among the military, then had a disagreement over
       | actually paying for the service. As a result, those units were
       | cut off the network.
       | 
       | > Literally no side of the dispute is commenting on the whole
       | ordeal, so this is about the extent of information we have.
       | 
       | > Starlink clearly sold those units expecting to get paid. Then
       | the terminnals got resold and shipped to Ukraine and it seems
       | like no one is paying for them now.
       | 
       | https://www.reddit.com/r/worldnews/comments/ym4w1q/ukraine_s...
        
         | [deleted]
        
         | mzs wrote:
         | one side is attributable to a senior official at the DoD:
         | 
         | >Negotiations between SpaceX and the Defense Department
         | continue despite Musk's claim that SpaceX withdrepw its
         | request, according to a senior defense official.
         | 
         | >"Negotiations are very much underway. Everyone in our building
         | knows we're going to pay them," the senior Pentagon official
         | told CNN, adding that the department is eager to have
         | commitments in writing "because we worry he'll change his
         | mind."
        
       | abeppu wrote:
       | The article ends with an implication that Musk's behavior is
       | partly about impacting the actual conflict:
       | 
       | > As a result, Musk's control of the signal gives him significant
       | sway over the battlefield at a time when he has come under heavy
       | criticism for arguing that Ukraine should sue for peace and give
       | up some of its territory.
       | 
       | I wonder if really the play is less ambitious: press covering
       | disruptions in the service, and quotes from military personnel
       | about how critical or valuable the service is are bolstering the
       | starlink brand more than providing uninterrupted service would.
        
       | warbler73 wrote:
       | The article has errors. UA pays $500 a month for the $5000/mo
       | high bandwidth high priority mobile service tier which they need
       | for their high bandwidth drone video streaming. SpX eats the rest
       | of the cost. This does not mean either that "it costs $4500/mo"
       | or that "they pay $4500/mo".
        
         | keneda7 wrote:
         | Do you happen to have a source for that? I've seen numbers
         | similar a couple times but never had a source on it.
        
       | eagerpace wrote:
       | They have something like 25k terminals in use. They've been
       | acquired from various sources. It's highly likely a temporary
       | billing or technical issue yet the article makes it sound like
       | it's being done deliberately. Maybe it is? But Occam's Razor.
       | 
       | Also, this has proven to likely be the most important piece of
       | tech on the battle field. The US government could march into
       | SpaceX HQ in a moment and turn it back on if needed.
        
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       (page generated 2022-11-04 23:02 UTC)