alt Hacker NewsThe markets are additive. The great thing about Starlink is that it is GLOBAL. Meaning if you want to offer it for ships and planes (where there are no alternatives) you might as well also offer it to RV. And to rural people. And to the military. And you can do so in every country on the whole planet at the same time.
Having a few 1000s of sats to cover the whole planet is crazy efficient.
If you look at just the satellites, the build + launch costs are about $2.5M ea, which is impressive to be sure. But they only last 5 years, so that's $500k per year replacement costs. Then if you look at their capacity, they still can't meet their FCC / RDOF broadband designation speeds, but let's be generous and say they can serve 1000 simultaneous users per satellite (their current ratio, let's say it's good enough, incl. oversubscription ratio). So that already means 50%-100% of the entire monthly Internet bill from a consumer is going to just be replacing satellites. Let alone everything else to be an ISP.
This is very basic math. They need to launch more satellites if they want to hit their RDOF throughput goals and serve customers in the remaining areas. The most valuable extra-rural areas were low hanging fruit and already drying up.. the future addressable market is more dense and competitive suburban areas, which further limits the number of users per satellite because everyone shares the same spot beam spectrum.
But as you know well--having your personal connections to SpaceX it seems as you always defend them on HN--Starlink is about Golden Dome not consumer internet, so the private markets will fund it.