The Debate Over Who Will Pay Up for Starlink Connectivity in Ukraine

The extensive installation of Starlink terminals in Ukraine, which earlier this year seemed to be a noble act of techno-utopianism has soured because SpaceX and governments can't agree on who should ultimately foot the bill for this historic humanitarian operation. On the one hand, some expect one of the richest individuals in the world, Elon Musk, to pay up. On the other hand, some think the richest military in the world should foot the bill. Furthermore, Musk recently tweeted that free Starlink connectivity will continue in Ukraine. And although his promise has merit, this game of financial chicken will cost Ukrainian lives. Musk's tweet read:

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

"Even though Starlink is still losing money & other companies are getting billions of taxpayer $, we'll just keep funding Ukraine govt for free." Hence, even though it secures Starlink's service to the nation for the present, despite it being a loss, it clearly isn't a long-term solution.

Musk offering free internet service to Ukraine

The endeavor got underway a few days after Russia invaded Ukraine in late February. According to Musk, Starlink terminals were "on the way," but he did not elaborate. The evident implication of this limited, rather promotional approach was that SpaceX was providing the terminals itself, either for free or with some understanding as to their purchase. Additionally, the latter turned out to be true as it became public that the U.S. Agency for International Development contributed some funds, the Polish and other European governments contributed more, and a number of militaries and NGOs contributed funds for transportation, installation, and, it appears, monthly fees for the service itself. According to USAID, "a range of stakeholders" contributed to the initial wave of support, which at the time amounted to about $15 million. However, the expenses weren’t a one-time thing. Musk recently tweeted that SpaceX deployed 25,000 terminals, five times the original shipment, in Ukraine and that they require more because many of them were damaged during the war. In addition, the top tier of service for connectivity is purportedly $4,500 per month. According to CNN's estimations, that amounts to an average monthly cost of $75 million. Moreover, although some people rightly questioned the appropriateness of using this novel and untested technology on a battlefield, reports from the nation's military indicate that it proved to be quite beneficial. The fact is that Ukraine utilized the capability of Starlink connectivity to the fullest extent possible in the spirit in which it was granted. But, due to the size and duration of the war, the circumstances surrounding Starlink changed beyond its initial parameters.

Musk, the governments, and Ukraine are at a three-way impasse

It is true that we cannot entirely blame SpaceX for the tens of millions of dollars in costs, free services, or lost revenue. However, it's useless to portray them as the victims because they entered the situation knowing that they would have to spend a lot of money on delivering a necessary service in a country that was in the midst of a war. On the other hand, governments also became involved in this. They couldn't possibly have thought that SpaceX would pay for the hardware and software on its own. And if they had, they should have demanded a written guarantee. But does funding some of it mean they're responsible for all of it? Meanwhile, the Ukrainian military has come to rely on the service and is correct in asserting that no matter what, whoever has to write an I.O.U., the terminals must remain operational. Otherwise, soldiers fighting for their nation would be put in direct and immediate danger. Therefore, there is no simple way to end this three-way impasse, so here's what needs to happen - Starlink connectivity in Ukraine must continue at minimal cost to them, not just temporarily but permanently. And any other result would be too terrible for all parties concerned.

What now?

So, the internet remains active. But, who foots the bill? SpaceX must cooperate and be open about the true costs and payments involved if it wants anyone to take its request seriously. Hence, it goes without saying that Musk must stop his annoying, narcissistic behavior since there is too much at risk for him to act in his typical egotistical manner. Besides, taxpayers in a dozen nations have already paid for it and most likely will do so for months or even years to come. Moreover, what are the costs involved in reality? For starters, the access fee of $4,500 per terminal seems excessive - it is retail pricing for early adopters rather than a bulk rate for government partners in a life-saving operation. And, although the Pentagon may not be the model of thrift, charging full price in this instance is impolite. (Aside from that, the corporation is presumably getting the greatest PR it can while attempting to increase demand for its actual customer service. Money cannot purchase such exposure.) Additionally, governments must decide on a figure and be clear about what to include in the aid package. On the other hand, officials in Ukraine would undoubtedly love it if every Starlink terminal was shipped to the nation the following day. But that is not feasible, just as other forms of assistance that would be beneficial are not feasible, such as specific military assets that are either too expensive or difficult to spare.

Conclusion

On another note, the United States is investing billions to bolster the Ukrainian military, despite the high expense. So, how much of that money will they use for Starlink connectivity? Is the monthly amount $10 million? Or $20 million? What factors determine such costs, and how will they monitor them? Besides, with that money, SpaceX can deliver the hardware and services at a predetermined standard. And even though everyone is grateful for the quick action SpaceX took in February, a few hurried phone calls and "we can make that happen" discussions do not constitute a long-term strategy for financing a deployment that increased to be worth hundreds of millions of dollars and numerous Ukrainian lives. Furthermore, like every compromise, it will make everyone a little less pleased. But, it won’t leave anyone disconnected, screwed, or killed as a result. Besides, a constantly changing group of stakeholders' poor planning and communication have led to this difficult and complicated situation. So, instead of throwing fingers, SpaceX and its government partners need to show dedication and transparency.