SpaceX Raises Ransom Amid 'Rus-Ukraine' War, Surprises with Service Fee Hike [Reading Science]

Prices Raised by 10-20%... "Due to Inflationary Pressure" Explanation

SpaceX

[Asia Economy Reporter Kim Bong-su] SpaceX, owned by American billionaire Elon Musk, recently raised the prices for satellite internet and launch vehicle services significantly. Although the company cited increased inflationary pressures as the reason, it is evaluated that the price hike is due to soaring costs caused by the Russia-Ukraine war.

According to space industry media SpaceNews on the 24th, SpaceX announced on its official website on the 22nd that it would significantly increase the fees for its Starlink satellite internet service. The monthly subscription fee was raised by 11%, from the previous $99 to $110, and the terminal deposit including the antenna was increased from $499 to $599 for new customers and to $549 for existing customers.

SpaceX also significantly raised the prices for small satellite launch services using its own launch vehicles. Previously, the cost to launch a small satellite weighing up to 200kg into a sun-synchronous orbit (approximately 500km) was set at $1 million, but this was recently increased by 10% to $1.1 million. Additionally, the fee per additional kilogram was raised from $5,000 to $5,500. Furthermore, the cost to lease the entire Falcon 9 and Falcon Heavy rockets, SpaceX’s own launch vehicles, was increased by about 8%, with Falcon 9 rising from $62 million to $67 million and Falcon Heavy from $90 million to $97 million.

SpaceX explained, "The sole purpose of this price adjustment is to keep pace with soaring inflation." In this regard, the U.S. Bureau of Labor Statistics announced on the 10th that the inflation rate over the previous 12 months reached 7.5%, the highest in nearly 40 years. Elon Musk also complained on Twitter on the 13th that "Tesla and SpaceX are currently facing significant inflationary pressures in raw materials and logistics."

Meanwhile, SpaceX has been receiving significant attention in the satellite internet and satellite launch vehicle leasing business since Russia invaded Ukraine on the 24th of last month. The Ukrainian government requested satellite internet support that can be accessed anytime and anywhere due to the destruction of ground networks, bringing global attention to the Starlink service, which had not made a big impact since its pilot service launch in 2020. Additionally, the Russian Federal Space Agency (ROSCOSMOS) retaliated against Western sanctions by announcing it would suspend satellite launch agency services for the European Union (EU), resulting in a windfall for SpaceX. Consequently, OneWeb, a British company and rival in the satellite internet market that had planned to use Russian Soyuz rockets, reluctantly signed a contract with SpaceX to meet its launch schedule. SpaceX’s Starlink satellite internet subscriber count recently surpassed 250,000, and an in-flight service is also expected to launch soon.