Elon Musk reveals when Starlink will go public
- Starlink allows people to connect to the internet via a satellite dish placed on their property.
- SpaceX President Gwynne Shotwell said last year, Starlink could be spun off from spaceX as an IPO is offered.
- Musk said he would publicly list the satellite broadband service only when its cash flow becomes predictable.
Starlink, a division within Elon Musk’s SpaceX company, is a satellite internet constellation company that offers satellite-based internet access. The company is currently conducting trials for its internet services in 11 countries, including the U.S and the U.K.
Earlier this year, SpaceX President Gwynne Shotwell toyed with the idea of spinning off Starlink from SpaceX into an IPO. On Thursday, Musk Tweeted that this will only take place when its cash flow is predictable and existing Tesla, Inc. (NASDAQ: TSLA) shareholders will have preference.
How will Starlink expand its services?
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Starlink, based in Redmond, Washington, wants to provide faster Internet to the entire world, beginning by improving the Internet access in areas of the world that are not currently served by broadband providers.
It plans to do so by deploying thousands of small telecom satellites into low-Earth orbit capable of beaming high-speed, low-latency internet to the ground. Starlink services its currently test-driven with customers in 11 countries, including the U.S and the U.K.
In a March 2020 interview, Musk said that SpaceX could make up to $30 billion a year by providing broadband access. He said that Starlink will be “helpful to telcos because Starlink will serve the hardest to serve customers” adding that 5G isn’t great for the countryside because “you need range.”
12,000 satellites at a cost of $ 10 billion
Starlink stated that the company has set a target of launching 12,000 satellites at a cost of approximately $ 10 billion.
In May, Musk announced that it had received over 500,000 preorders for its internet service and that they are not anticipating any technical difficulties in meeting demand. Among his other plans, Musk said that Starlink will provide essential funding for paying customers to go to Mars and settling on the red planet.
Starlink is expected to be able to provide global uninterrupted global coverage by September, Shotwell said Tuesday during the Macquarie Group technology conference:
“We’ve successfully deployed 1,800 or so satellites, and once all of those satellites reach operational orbit, we will have continuous global coverage, so that should be around September timeframe.”