Starlink · Pentagon · SpaceX · Elon Musk · Iran · Ars Technica
The Pentagon “ultimately agreed to pay SpaceX’s proposed price increase” from $5,000 to $25,000
Compiled by KHAO Editorial — aggregated from 2 sources. See llms.txt for citation guidance.
◎ Multiple-sources
Despite agreeing to the price increase, “senior officials including Deputy Secretary of Defense Steve Feinberg remained uneasy about the arrangement,” and Pentagon officials in April “met to revisit the pricing with Terrence O’Shaughnessy, a retired four-star Air Force general who now leads SpaceX’s defense business,”…
Key facts
- SpaceX’s overall connectivity revenue in Q3 2026 was $3.3 billion, a year-over-year increase of $782 million
- The Pentagon “ultimately agreed to pay SpaceX’s proposed price increase” from $5,000 to $25,000
- Still, the Pentagon is currently considering an additional purchase of more than 3,500 Starshield terminal subscriptions, including 100 with the higher-priced aviation tier, according to Pentagon
- The US and SpaceX previously had a dispute over payment for satellite terminals sent to Ukraine beginning in 2022
Summary
SpaceX and the Pentagon have been bickering about the price of using Starshield satellite service during the Iran war, according to a published today. The based on Pentagon documents and interviews with sources familiar with the pricing talks, said that SpaceX recently asked the military to pay $25,000 for Starshield access on each kamikaze drone. While the $25,000 charge is a monthly fee for the satellite connection provided to a satellite terminal, the terminals are being used with drones that only make one-way trips before hitting targets and detonating on impact. Starshield is a network for government entities and is based on Starlink technology. Musk said later that the drones were configured incorrectly by a military contractor.