Elon Musk is very interested in making someone richer, but that someone is not me. And not you either…
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Expensive is relative, but recent estimates for optical fiber put the cost at USD 27,000 per mile for the initial laying of an optical fiber line. The estimated maintenance cost is 1% of the initial construction cost per year, so USD 2700 per mile annually.
Estimated costs for cell towers is between $US100,000 and 350,000, depending on materials and labour costs. A US study in 2017 estimated a cost of $US 12.5 billion to cover US roads which are not yet covered by mobile networks, and a maintenance cost of 1.8 billion per year, or around 8.64% of the original construction cost annually.
So in a small, crowded country like Switzerland where you have 211.68 people per square kilometer, the costs of a telecom network are low. But in less-populated countries, the per-person cost of building and maintaining a telecom network is much higher. And in many countries, purchasing power is also much lower than in Switzerland.
According to Starlink, its per-satellite cost is below USD 500,000. I don’t have data on maintenance costs, but looking at those figures, it seems to me that orbital networks could potentially be much cheaper.
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One problem I foresee with Starlink is that it is based in the US, an therefore prone to US sanctions. As I see it, the biggest potential market for what Starlink currently offers is in developing countries. The emergence of a strong competitor based in a more neutral country could wipe out Starlink’s biggest potential market for immediate growth.
Good point. I’d also be worried about some of their satellites being ‘demilitarized’. Musk was playing with fire by providing spot beams (or whatever) and free terminals in Ukraine. He tried to back off when his feet got too warm but could still get burnt.
There could still be a way to sneak into Starlink pre-IPO by way of Private Equity with EquityZen. Probably not realistic for retail investors. I would expect SpaceX shareholder to get a preferential offer when it comes to spinning off Starlink.
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I’d place a bet on Starlink and Neuralink when they IPO only because these outlandish goals are Musk’s vision and he’s unhinged enough to go for them.
this comment has aged well. ASTS to the moon 
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Pls update 
I guess
A lot has changed in these two years, but I still think the same applies: time will tell.
With only six satellites in space so far, it’s still early days, but they have already proved they can do something Starlink can’t. The potential is huge, and the tech gap vs. competitors looks real.
When the share price dipped below $3, I was honestly scared. I had just bought a house around that time, so I didn’t have much extra cash to average down and I wasn’t willing to sell any of my VT for more ASTS.
Right now, I’m holding 2,600 shares of ASTS at an $8.29 average, plus 42 shares of ASTX at a $29 average. Not planning to sell anytime soon. Don’t ask me why, but part of me feels this could be the next Nvidia… or maybe it won’t. Either way, I’m holding for the long run.
It’s been a crazy ride, months being up $100K, then down $100K, or ±$20K in a single day. Currently the position is about 22% of my net worth, so yeah… time will tell
Let’s see where this goes.
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Congrats! Bought mine at $22. It’s been a rollercoaster 
if you don’t mind me asking, how many shares do you hold?
50, i was short on cash 
I should had been more optimistic 
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Great business model, highest tech for retail, potential of high share of the market as first mover. Not at least a manager who demonstrated ability. It looks like a no brainer.
The main question: invest by IPO (science says not), or how long wait for a correction after IPO?