Musk "Up to $30 Billion Investment in Satellite Internet Service Business"

[Photo by Reuters Yonhap News]

[Asia Economy Reporter Byunghee Park] Elon Musk, CEO of Tesla, announced that he plans to invest up to $30 billion in the satellite internet service business.

On the 29th (local time), Musk revealed that SpaceX, the private space exploration company he founded, plans to invest up to $30 billion in Starlink. Musk made this statement during a video interview held as part of the Mobile World Congress (MWC) schedule in Barcelona, Spain. Starlink is SpaceX's satellite internet service business that provides ultra-high-speed internet service worldwide using low Earth orbit small satellites.

Musk said, "SpaceX will need to invest between $5 billion and $10 billion until Starlink shows positive cash flow, and the long-term investment amount is estimated to be between $20 billion and $30 billion."

Musk explained that SpaceX currently owns 1,500 satellites for Starlink's broadband internet service and that 12,000 satellites will be needed to expand the service coverage worldwide.

Foreign media reported that Musk's expected investment amount is significantly higher than the estimate made by Gwynne Shotwell, Chief Operating Officer (COO), in 2018. COO Shotwell said in 2018 that about $10 billion would be needed to build 12,000 satellites.

Musk had previously said that Starlink's annual revenue could reach $30 billion by 2025, but he did not mention revenue forecasts in this interview.

Musk stated that Starlink currently has about 70,000 subscribers in 12 countries. He also predicted that the Starlink business will grow rapidly over the next year, with the number of subscribers increasing to 500,000 after one year. Additionally, he announced that the service area will be expanded worldwide, excluding polar regions, by August.

Last month, SpaceX completed the first orbital satellite network construction for Starlink. SpaceX plans to gradually build five orbital satellite networks called 'Shells.'

This content was produced with the assistance of AI translation services.