SpaceX has raised prices for military drones
Elon Musk’s American company SpaceX has sharply raised prices for Starlink services for U.S. military drones. According to Reuters, following the successful use of drones in the war against Iran, the company informed the Pentagon that the military would have to pay significantly more for satellite communications.
The dispute centers on the American LUCAS kamikaze drones. These unmanned aerial vehicles operate via the Starlink satellite network and are actively used by the U.S. military. After the drones began demonstrating strong performance during the U.S. war against Iran, SpaceX decided to review the terms of its partnership with the Pentagon.
Reporters write that company representatives met with military officials and stated that the current price is too low for this type of use. Previously, the Pentagon paid approximately $5,000 per terminal. But SpaceX said that combat drones require a completely different level of service—one that is more expensive and more complex.
The company insisted that a fair price is nearly $25,000. “This is more in line with aviation-level usage rather than standard ground communications,” SpaceX explained.
The Reuters report notes that this does not refer to standard civilian Starlink terminals available for purchase in stores. For the Pentagon, SpaceX uses a separate military system called Starshield. It operates via special secure satellites and offers a higher level of security.
SpaceX sells this system to the U.S. Department of Defense under separate contracts. The Pentagon, however, was not thrilled with the new prices.
They believed that kamikaze drones use the internet for only a short time—a few minutes or hours—so paying for full-fledged aviation communications is impractical. But after negotiations, the military ultimately agreed to the new price.
Due to SpaceX’s new rates, the cost of a single LUCAS drone has risen significantly. Previously, such a drone cost approximately $30,000. After the terms were revised, its price nearly doubled.
For the Pentagon, this was yet another sign of just how heavily the U.S. military relies on private technology companies. Especially on SpaceX, which now controls a vast portion of satellite communications for the U.S. and its allies. Reuters reports that the drone issue is just part of a larger conflict between SpaceX and the U.S. military.
Recently, the Pentagon has been increasingly at odds with Elon Musk’s company over pricing, network access terms, and control over technology. A separate dispute concerns Iran. The U.S. wants to help local residents bypass internet blockades via Starlink, but the parties cannot agree on funding for such a project. This refers to a direct satellite communication system for smartphones—something akin to a satellite equivalent of 5G. It has played a crucial role in modern warfare for several years now. Starlink is actively used by the military, intelligence agencies, drone operators, and emergency services in various countries around the world.
The system gained particular notoriety after the start of the full-scale war in Ukraine, when Starlink helped maintain communications during Russian attacks on energy and telecommunications infrastructure. But at the same time, the story from the U.S. reveals another side of this dependence: a private company can effectively influence the military capabilities of entire nations. “The Pentagon is increasingly dependent on SpaceX, and SpaceX is well aware of this,” Reuters journalists note.
The story of the new rates shows how quickly modern warfare is changing. Just a few years ago, satellite internet was a supporting technology. Now, drones, intelligence, communications, and even army command systems cannot function without it.
And the more nations depend on such services, the more influence private companies gain—especially if those companies control critical infrastructure.
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