The widespread deployment of Starlink terminals in Ukranian has soured as governments disagree on who should foot the bill. Some people think the richest man in the world should cough up, while others think the military should too. Starlink will continue to provide internet to the Ukranian for free despite the fact that it will cost Ukrainian lives.
Musk said that Starlink will keep funding the Ukranian government for free, even though it's a loss. This secures the service for the moment, but it isn't a long term solution.
The hell with it … even though Starlink is still losing money & other companies are getting billions of taxpayer $, we’ll just keep funding Ukraine govt for free
— Elon Musk (@elonmusk) October 15, 2022
The effort started after Russia invaded Ukraine. The Starlink terminals were on the way, but Musk didn't give any details. Many took this minimal, rather promotional approach to mean that SpaceX was giving the terminals or at least understanding as to their purchase.
As it came out, the U.S. Agency for International Development had paid for some, the Polish and other European governments had paid for more, and various militaries and NGOs had contributed for the cost of transport, installation, and the monthly fees for the service itself. The first wave of support totaled around fifteen million dollars.
The costs weren't a one time thing. Thousands of terminals have been destroyed in the fighting and more are needed. The highest tier of service is said to cost $4,500 a month. It adds up to around $75 million per month.
Reports from the country's military suggest that relying on this new technology has been very helpful. The situation around Starlink has evolved beyond its original scope because of the length and scale of the war.
It's true that the company can't be held completely accountable for costs, free service, or lost income. They went into this eyes open with the intention of providing an expensive and essential service in a war-torn country, seemingly with no plan to cover the cost.
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The governments also entered this. They should have gotten the cost of the hardware and software in writing if they did not. Is it possible that they are on the hook for all of it?
Whatever happens, whoever has to write whoever an I.O.U., the terminals must stay on, or soldiers will be put in danger.
This 3-way standoff has no easy resolution, so let's start with what we know needs to happen. It's too bad that any other outcome is too bad.
The internet doesn't go away. Who is responsible for the cost? If anyone is going to take the request seriously, it needs to be transparent about the costs and payments. Too much is at stake for Musk to indulge in his usual egotism.
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Taxpayers in a dozen countries have already paid for it and will probably continue to do so for a long time. $4,500 per terminal for access seems excessive, for one thing, not a bulk rate for government partners in a life-saving operation The Pentagon is not a thrift but it is charging full price in this situation. While it is trying to drum up demand for its real consumer service, this is the best PR the company can get. Money can't give this kind of exposure.
Governments need to be firm about what can and can't be provided as part of the aid package Ukrainian officials would love it if every available Starlink terminal was shipped to the country, but that is not possible, the way other forms of aid that would be helpful are not possible, for example certain military assets that are too costly or difficult to spare.
The cost of supporting the Ukrainian defense is large and the US is dedicating billions to that cause. How much of it will be used for Starlink? Start with a number. Is it 10 million a month? How will those costs be monitored?
A level of service and hardware can be provided by the company. It's not a long-term plan for covering the cost of a deployment that has grown to be worth hundreds of millions of dollars and numerous Ukrainian lives if only a few quick phone calls and conversations can be made.
It won't leave anyone disconnected, shafted, or dead, but it will leave everyone a little unhappy. A constantly shifting group of stakeholders are to blame for this complicated and awkward situation. There is a need for transparency and commitment from the government partners of the company.
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