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SpaceX Raising $500 Million To Help Build Its 'Starlink' Satellite Broadband Network (cnbc.com) 116

According to the Wall Street Journal, SpaceX is raising a $500 million round of fundraising to help build its massive satellite internet project, called Starlink. "The new funding puts SpaceX's valuation at $30.5 billion," reports CNBC. "The report says the capital comes from existing shareholders as well as new investor Baillie Gifford, a Scottish investment firm." From the report: Starlink -- a name SpaceX filed to trademark last year -- is an ambition unmatched by any current satellite network. The company is attempting to build its own constellation of 4,425 broadband satellites, with another 7,518 satellites to come after. SpaceX will begin launching the constellation in 2019. The system will be operational once at least 800 satellites are deployed. Starlink would offer broadband speeds comparable to fiber optic networks.The satellites would provide direct-to-consumer wireless connections, rather the present system's redistribution of signals, transforming a traditionally high-cost, low reliability service.
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SpaceX Raising $500 Million To Help Build Its 'Starlink' Satellite Broadband Network

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  • Teledesic (Score:2, Informative)

    by Anonymous Coward

    IMHO, USA cost of broadband is from monopoly, and they'd simply drop the price to just below the cost. You cannot reliably deliver broadband by satellite, since television is no longer delivered by satellite primarily. This is wishful marketing at best.

    https://en.wikipedia.org/wiki/Teledesic

    "Teledesic was a company founded in the 1990s to build a commercial broadband satellite constellation for Internet services. Using low-Earth-orbiting satellites small antennas could be used to provide uplinks of as much

    • by Anonymous Coward

      Lucky for us, technology doesn't change in 25 years. Or does it?

      • Re: (Score:1, Troll)

        Comment removed based on user account deletion
        • by virtig01 ( 414328 ) on Tuesday December 18, 2018 @11:50PM (#57828532)

          [visiting Dr. covfefe.....]

          patient: Hey doc, I don't feel right. Maybe something has changed.
          covfefe: Let me look at you.... organs in body, teeth in head, shoes on feet. Just like last year. Let me know when that changes.

        • You think making a list of things which (to you) don't appear to have changed is evidence that technology hasn't changed?

          Nice. Hey, if we look back 10,000 years, people wore clothes, ate food, and had fire. Clearly our technology hasn't changed in 10,000 years.

        • Is any of those things related to communication electronics?
          • Comment removed based on user account deletion
            • I don't see how it *needs* to "affect the distance to space or the cost to put bent pipes up there". Those things can evolve perfectly independently.
        • 1) Paved streets. Asphalt. Street lights, painted lines. Nope.

          Look a little closer. The chemistry of the pavement has improved. The street lights use LEDs. The paint has improved chemistry too and sometimes isn't paint at all.

          2) Houses. Wood, plastic, foam, glass, bricks, mortar, aluminum, copper.... Nope.

          You seriously think there hasn't been any improvement in building materials or technology?

          3) Cars. Rubber wheels, chemical fuels, pistons. Some electric cars. They had those in 1925. Nope.

          Umm, yeah, the state of the art in cars clearly hasn't advanced at all since the Model T. [/sarcasm]

          4) People. They wear shoes. Clothes. Nope.

          What are those clothes and shoes made of? How are they made? Do they look the same? Do they cost the same? Were you buried under a rock somewhere?

          5) Airplanes in the sky. They had those in 1975. They even had supersonic passenger jets in 1975. Not anymore... Oops.

          I th

    • You cannot reliably deliver broadband by satellite, since television is no longer delivered by satellite primarily.

      That's not how it works. What are you on about?

    • You underestimate the number of underserved rural customers. It could be profitable without taking away a single customer that already had true broadband.

      • by Ranbot ( 2648297 )

        You underestimate the number of underserved rural customers. It could be profitable without taking away a single customer that already had true broadband.

        Exactly. Not just rural US and EU customers either... think of all the under-served rural customers in the entire world. Urban/Suburban folks are not going to be the target consumer.

    • SpaceX has reduced launch costs by more than 10X, pre-SpaceX a typical launch for a non-heavy payload would be around $600million. SpaceX was offering launch costs of $80million though recently raised prices to around $120 for government launches. This includes all SpaceX's profit.

      This massive reduction in launch costs makes putting a bigger installation of more birds cheaper, the bigger the constellation of birds the lower you can put it and the better the latency.

      Get enough birds and you can be low enough

    • since television is no longer delivered by satellite primarily

      Maybe where you live (I assume the US) but where I live satellite is the primary form of receiving television, heck we can still "tune" in to broadcasts from transmission towers for some channels. They were supposed to change to digital to free up spectrum but have failed to do so due to utter incompetence.

  • Indeed (Score:5, Insightful)

    by rmdingler ( 1955220 ) on Tuesday December 18, 2018 @09:09PM (#57828108) Journal

    Despite all the negative publicity surrounding Elon, Tesla, et al, the South African continues to have no trouble attracting capital for new ventures.

    We could do much worse betting on a vanguard, since so few seem hellbent on guiding us to a better future outcome.

    • by Anonymous Coward

      He's African American now.

    • Re:Indeed (Score:5, Informative)

      by bill_mcgonigle ( 4333 ) * on Tuesday December 18, 2018 @10:22PM (#57828334) Homepage Journal

      no trouble attracting capital for new ventures

      That's because he lands rockets and cranks out more than half of the EV's in the world. And builds tunnels under LA. Does he still run a school in his spare time?

      • That's because he lands rockets and cranks out more than half of the EV's in the world. And builds tunnels under LA. Does he still run a school in his spare time?

        I have no idea if I like Elon Musk as a person. I do like everything he is doing and the report of him smoking marijuana and deciding he didn't like it was just a bonus (I like an open mind).

        Your words describe why he has no trouble finding funding... but to me, they indict the likes of Bill Gates and friends. Bill could pay for all of SpaceX in CASH. And yet, what is Bill doing? He is securing his wealth rather than doing fun (risky and potentially EXTREMELY profitable) things.

        Honestly, it is up to each in

    • We could do much worse betting on a vanguard

      You certainly could! [youtube.com]

  • So its valuation earlier this year was externally estimated to be $26 billion [forbes.com] and just two months ago was self-reported at 27.5 billion [seekingalpha.com], and securing an additional half billion in funding suddenly pops it to $30.5?

    Ali G [youtube.com] would be jealous.

    • Re:Musky math (Score:4, Insightful)

      by bill_mcgonigle ( 4333 ) * on Tuesday December 18, 2018 @10:24PM (#57828338) Homepage Journal

      Companies trade at a multiple of cash-on-hand, plus the funding will be launching an unprecedented communications constellation next year which will itself be a major driver of ongoing revenue (some from me).

      Yeah, that's worth more than $4B.

      • Companies trade at a multiple of cash-on-hand

        The question isn't whether there's a greater fool in existence who's willing to buy stock at a multiple of a company's cash on hand (or a company's value, for that matter). The question is whether cash on hand increases the value of a company beyond the amount of cash on hand. Any basic textbook you care to pick up will readily confirm that it doesn't.

        which will itself be a major driver of ongoing revenue

        This is closer in that future cash flow is one factor that can be used to calculate enterprise value, but since Starlink has been in the pipeline for quite

  • I wonder if there is a chance that the much hyped 5G rollout coming to a light-pole near you has an Achilles Heel of sorts. Probably makes no sense (antenna or power issue for instance). But fun to think about.
    • by AHuxley ( 892839 )
      The ping up and down for sat is the unexpected. What the rest of the network looks like?
      The peering around the rest USA from a sat?
      Whats the next hop with sat? In the same city?
      What 5G can do over a very short distance and a good series of tubes back to the internet will be the winning tech.
  • The infrastructure ( boosters, satellites, up/down links, and the bundles of integration are not the problem ). And the economics of doing all these things can be aggressively improved. But the big brick wall every technology company has hit like a bug on a windshield with any sort of orbital communications is the regulatory environment. International agreements that favor incumbents, frequency allocations, and almost every company has a pet telecom owned by the government ( or wealthy family proxies ), a
    • by AHuxley ( 892839 )
      The filling of low level "space" with a lot of new satellites will not be a problem.
      Making people pay for the ping, peering and lag back from the sat "network" will be the funny selling part.
  • Teledesic? is that you again?
    • by Anonymous Coward

      Look guys, I found a project from 28 years ago that failed, so this too must fail! Ha ha, I am very smart.

      From wiki - the only prototype for the Teledesic constellation was launched at a Cost per launch: US$40 million. That's for one satellite weighing in at around 300kg. A Falcon 9 can lift up to 22.000kg to LEO for an advertised cost of ~50-60 million USD. That's the commercial cost, the true SpaceX cost will be of course lower. You are right, the two projects are identical! You are so so smart!

  • ...but for sure the shadow produced by all these satellites will solve the global warming problem!
  • Starlink?
    Someone call Ted Nelson, Xanadu has been re-branded.

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