Name: SpaceX is spending $1,500 to make each Starlink terminal, but customers will only be charged $499, its president says
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SpaceX is spending $1,500 to make each Starlink terminal, but customers will only be charged $499, its president says

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Two crossed lines that form an 'X'. It indicates a way to close an interaction, or dismiss a notification.An icon in the shape of a person's head and shoulders. It often indicates a user profile.Redeem nowGet the latest tech news &amp; scoops — delivered daily to your inbox.Something is loading.Gwynne Shotwell, the president of SpaceX, said on Tuesday that the aerospace company has reduced the cost of each Starlink terminal from $3,000 to $1,500.Starlink customers have to pay $499 for the beta Starlink kit, which includes the user terminal, also known as "dishy." The terminal connects them to Starlink satellites beaming high-speed internet down to Earth, provided they subscribe for $99 a month.SpaceX signed an agreement a few years ago with Swiss manufacturer to build the terminals, a person with knowledge of the deal told Insider in December. They added that SpaceX may be paying $2.4 billion to produce 1 million Starlink terminals.Shotwell confirmed on Tuesday during a for the Satellite 2021 LEO Digital Forum that the company had to pay $3,000 for each terminal before reducing the price to $1,500."We're not charging our customers what it costs us to build those terminals," she said, adding that SpaceX has "made great progress on reducing the cost" of each Starlink terminal by half the original amount.At present, for the "Better Than Nothing Beta" test — that includes a $99 monthly subscription and the $499 kit, which customers set up at home. It comes with a tripod, Wi-Fi router, and terminal, which connects to the Starlink satellites.SpaceX didn't immediately respond to Insider's request for comment, but in December that it's not possible for the company to make each terminal for under $500.While it's not confirmed how many terminals have been sent out to the beta-test subscribers, SpaceX said in February that Starlink had in the US and abroad.The company also "just rolled out a new version two that saved about $200 off the cost" and is expecting the price of each terminal to reduce to "the few hundred-dollar range within the next year or two" for SpaceX, Shotwell said.Read more: This is good news for Starlink users looking for lower service costs.For US customers, a compared to other major internet providers. But in the UK, paying £439 for the kit and the £89 subscription fee for 150 megabits per second is expensive when compared to some national providers, which are offering speeds of up to .Elon Musk, the CEO of SpaceX, has spoken out in the past about the difficulties with financing Starlink.The billionaire in February that the company "needs to pass through a deep chasm of over the next year or so to make Starlink financially viable."He that Starlink is "a staggeringly difficult technical &amp; economic endeavor," but that if it succeeds, the cost for users would improve each year. this year blasted off on Wednesday, sending a batch of 60 satellites into orbit to expand SpaceX's ever-growing constellation. The aerospace company has more than 1,350 satellites in orbit and plans to launch .Sign up for notifications from Insider! Stay up to date with what you want to know.Subscribe to push notificationsAn icon in the shape of a lightning bolt.Keep readingIt indicates an expandable section or menu, or sometimes previous / next navigation options.Two crossed lines that form an 'X'. It indicates a way to close an interaction, or dismiss a notification.

Two crossed lines that form an 'X'. It indicates a way to close an interaction, or dismiss a notification.An icon in the shape of a person's head and shoulders. It often indicates a user profile.Redeem nowGet the latest tech news &amp; scoops — delivered daily to your inbox.Something is loading.Gwynne Shotwell, the president of SpaceX, said on Tuesday that the aerospace company has reduced the cost of each Starlink terminal from $3,000 to $1,500.Starlink customers have to pay $499 for the beta Starlink kit, which includes the user terminal, also known as "dishy." The terminal connects them...

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SpaceX is spending $1,500 to make each Starlink terminal, but customers will only be charged $499, its president says

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