Starlink internet satellites have been a lifeline for Ukraine鈥檚 government and military operations during the country鈥檚 war with Russia. But reports about a dispute over who pays for the Starlink services operated by SpaceX, coupled with public statements from SpaceX founder Elon Musk, have cast uncertainty over whether Ukraine can continue to rely on the technology.
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How important is Starlink to Ukraine?
Since the Russian military invasion began on 24 February 2022, Ukrainians have been relying on Starlink鈥檚 internet satellite communications to support critical government functions and military operations. Russian attacks early in the invasion disrupted Ukraine鈥檚 traditional communications networks.
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The Starlink service operated by SpaceX has not only helped Ukraine鈥檚 cities keep functioning amidst Russian attacks on communication infrastructure but is also playing a vital role in Ukraine鈥檚 military counteroffensive. For example, have been used to coordinate Ukrainian artillery and airstrikes on Russian military positions.
Most recently, a Ukrainian government official for Ukraine鈥檚 power plants and communication networks after Russia bombarded Ukrainian cities with salvoes of cruise missiles. In response, on 12 October, 鈥淵ou鈥檙e most welcome. Glad to support Ukraine.鈥�
There are currently about in Ukraine, according to Musk.
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Why is SpaceX saying it can no longer fund Starlink in Ukraine?
A public rift between Musk and Ukrainian officials began on 3 October when Musk about his 鈥淯kraine-Russia Peace鈥� plan that proposed holding UN-supervised elections in regions of Ukraine that had been illegally annexed by Russia during its invasion, as well as recognising Russia鈥檚 2014 annexation of Crimea from Ukraine.
The proposal sparked a backlash from Ukraine鈥檚 government, with President Volodymyr Zelensky about whether people liked Elon Musk more when he supported Ukraine or Russia. Andrij Melnyk, Ukraine鈥檚 ambassador to Germany, to Musk with the words, 鈥淔鈥� off is my very diplomatic reply to you.鈥�
Several days later, the reported that Ukrainian troops had been experiencing 鈥渃atastrophic鈥� loss of Starlink communications during battles to reclaim territory in the south and east of Ukraine in recent weeks. The article also described the Starlink terminals that send and receive the satellite internet signals as having been either donated by SpaceX, purchased by the US government or crowdfunded by donors.
Musk by saying the Financial Times article 鈥渇alsely claims that Starlink terminals & service were paid for, when only a small percentage have been.鈥� He also described the reported battlefield issues as being classified.
On 13 October, that SpaceX had sent a letter to the US Department of Defense in September requesting that the US military take over funding the Starlink service for Ukraine鈥檚 government and military. The SpaceX letter claimed the Starlink service for Ukraine would cost more than $120 million for the rest of 2022 and almost $380 million for the following year.
Following up on the CNN report, Musk that 鈥淪paceX is not asking to recoup past expenses, but also cannot fund the existing system indefinitely鈥�. He that SpaceX鈥檚 costs for supporting Starlink were approaching $20 million per month and that 鈥�!鈥�
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So who is paying for Starlink use in Ukraine?
The SpaceX letter to the Department of Defense mentioned that 85 per cent of Starlink terminals in Ukraine were paid or partially paid for by countries such as Poland and the US, or by other entities such as the . SpaceX has also donated some terminals.
The letter described those other entities paying for about 30 per cent of the internet connectivity service. SpaceX says the service costs $4500 each month per unit at what it describes as the highest level of Starlink service.
But CNN pointed out that the consumer service rates listed for Ukraine on Starlink鈥檚 website are just $60 per month, which means SpaceX is requesting that the US military pay a service rate for Starlink that is 74 times more expensive.
Meanwhile, Ukrainians have pushed back against the idea that they are freeloading on SpaceX鈥檚 generosity. Ukrainian activist on 14 October showing her own payments for Starlink internet service.
Dimko Zhluktenko, a software engineer and founder of the Dzyga鈥檚 Paw Charity Fund, a non-profit organisation created to help buy equipment for the Ukrainian military, claimed to have bought and delivered more than 50 Starlink terminals to the frontlines while continuing to pay the $60 monthly internet service fee per unit.
鈥淚 would be VERY curious to see actual transparency on the process of getting StarLinks up and running in Ukraine, all the hidden costs that Elon claims,鈥� .
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What happens now?
Given the importance of Starlink in Ukraine鈥檚 ongoing fight to repel the Russian invasion, don鈥檛 be surprised if the US government steps in or finds partners to pay SpaceX for Ukrainian usage of the Starlink service.
But the US government may have some leverage in negotiating the cost with SpaceX. Elon Musk鈥檚 company is heavily dependent on US government contracts worth billions of dollars for launching NASA astronauts into space and possibly landing them on the moon. SpaceX is even working with the US space agency on ways to extend the operational life of the Hubble Space Telescope.
Despite all the talk of costs, SpaceX has also benefited from its willingness to support Starlink鈥檚 usage in Ukraine. After US military officials praised the Starlink service鈥檚 resiliency on the battlefield, the US Air Force to SpaceX for providing Starlink services to a unit based at Ramstein Air Force Base in Germany 鈥� potentially a first step toward a bigger contract.
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