Starlink

According to our analysis, we estimate that Starlink could be worth about $30 billion by 2025, assuming it generates revenues of about $10.4 billion then and is valued using a P/S multiple of about 3x. Below, we provide a breakdown of the opportunity Starlink provides to SpaceX and the potential risks.

The technical viability and utility of beaming high speed, low-latency broadband internet directly into the cockpits of military aircraft is being tested under a program called Global Lightning. SpaceX has engaged the initiative and was awarded $29M to pursue development and testing, far more than any other contract recipient. In October 2019, SpaceX and the USAF began publicly discussing the latest results of that effort to test Starlink’s capabilities in the realm of in-flight connectivity. As reported by SpaceNews, SpaceX COO Gwynne Shotwell revealed that Starlink had successfully demonstrated a data link to the cockpit of a military aircraft with a bandwidth of 610 megabits per second (Mbps), equivalent to a gigabyte every ~13 seconds

Just last week, Air Force acquisition chief William Roper told reporters at the Pentagon that the Air Force and SpaceX will conduct an event on April 8, together with other branches of the U.S. military, that will see SpaceX Starlink satellites link up with multiple armed forces systems in a “massive” live fire exercise.

OneWeb, the satellite operator backed by SoftBank Group Corp., is mulling a possible bankruptcy filing to address a cash crunch as it grapples with high costs and stiff competition, according to people with knowledge of the preparations.