Lead

The Pentagon has denied reports that it has been clashing with SpaceX over the cost of using its satellite internet network, which the military's kamikaze drones rely on in operations against Iran. The denial came after Reuters reported that SpaceX executives met with Pentagon officials to argue for a higher price, and the Pentagon ultimately agreed to the increase, almost doubling the cost of each LUCAS drone.

In a post on X, Pentagon spokesperson Sean Parnell said the report was "wrong" without elaborating why. "SpaceX remains a strong and valued partner to the Department of War," he wrote. "The claims in this article are simply not based in reality and do not reflect the close, effective collaboration between our teams."

Elon Musk, in a separate post, labeled the report "false" but said the civilian Starlink system had been improperly used "for military purposes."

Coverage comparison

Reporting by Reuters, carried by outlets including ABC Australia and the Jerusalem Post, detailed that within weeks of the United States launching its bombing campaign, SpaceX executives met with Pentagon officials and argued the military had been paying about $5,000 for a connection per terminal while effectively using a higher tier of service worth closer to $25,000, according to two sources familiar with the matter and Pentagon documents reviewed by Reuters.

The Pentagon ultimately agreed to SpaceX's price increase, Reuters reported, almost doubling the cost of each LUCAS drone, which initially cost $30,000 per unit. SpaceX argued the drones were operating under conditions aligned more closely with its aviation-tier subscription rather than a lower-tier service it had been paying for. Pentagon officials countered that the higher tier's monthly fee of $25,000 per unit was designed for aircraft, not kamikaze drones that used the connection for a matter of minutes or hours, according to a Reuters source.

The dispute is part of increasing tensions between SpaceX and the Pentagon over Starlink pricing in recent months, according to interviews with five people familiar with the matter and Pentagon documents reviewed by Reuters.

The Pentagon, which is also seeking to help Iranian citizens bypass government-imposed communications blackouts, has been at odds with SpaceX over pricing for a plan to provide direct-to-cell connections with Starlink, two of the sources said.

Separately, Britain has begun using SpaceX's militarized satellite network Starshield, according to two people familiar with the matter, making it among the first countries outside the United States to adopt the government-focused variant of Starlink.

The British defense ministry started transitioning operational military traffic to the more expensive Starshield service around the beginning of this year, the people said. In a statement to Reuters, the ministry did not comment on Starshield but said personnel still use Starlink for non-operational purposes, such as keeping in touch with family during deployment, and that it "is not used for military operations." It added that the ministry uses a range of suppliers for its armed forces.

Key Claims

  • The Pentagon denied claims of clashing with SpaceX over costs to use its satellite internet network, with spokesperson Sean Parnell calling the report "wrong." (Reported by ABC News)
  • SpaceX executives met with Pentagon officials to argue for a price increase, asserting the military was paying about $5,000 per terminal when it used a service worth closer to $25,000. (Reported by Reuters and covered by ABC News and the Jerusalem Post)
  • The Pentagon agreed to the price increase, almost doubling the cost of each LUCAS drone, which initially cost $30,000 per unit. (Reported by Reuters and covered by ABC News and the Jerusalem Post)
  • SpaceX sells a military-specific version of Starlink called Starshield to the Pentagon under a 2023 agreement. Starshield terminals can connect to both commercial Starlink satellites and a separate, more secure constellation. (Reported by Reuters and covered by ABC News and the Jerusalem Post)
  • Britain has begun using Starshield, making it among the first countries outside the US to adopt the service, and the British defense ministry started transitioning operational military traffic to Starshield. (Reported by Reuters and covered by the Jerusalem Post)

Perspectives

Pentagon: Denied the claims of a clash, stating that SpaceX remains a valued partner and the report does not reflect the effective collaboration between the teams.

SpaceX (Elon Musk): Called the report "false" but acknowledged the civilian Starlink system was improperly used for military purposes, suggesting the use of Starshield instead.

British Defense Ministry: Did not comment on Starshield but said Starlink is not used for military operations, only non-operational purposes like family communication, and that it uses a range of suppliers.