alt Hacker NewsOn the one hand you have a technology product that’s only relevant to rural consumers. Nine out of ten people have cable already.
On the other hand your margins are amazing because all you do is fly little boxes over everyone’s heads launched with government subsidized rockets. No linemen or plant-hire or contractors to sap your profits.
The biggest threat would be commoditized terrestrial wifi / 5G. The more cell service competition there is, the smaller the market for satellite, until it’s only applicable to 1% of the population (and the poorest 1% at that.)
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No it’s not.
I flew from Zürich to Bangalore via Qatar and both flights had starlink.
There are many many uses for it, besides rural homes.
> Nine out of ten people have cable already.
What on Earth are you talking about?!? Half the people on Earth don’t have any sort of internet access at all.
> government subsidized rockets
The Starlink launches are not subsidized in any way. Now it’s clear you are either totally uninformed, or actively trolling.
> The biggest threat would be commoditized terrestrial wifi / 5G. The more cell service competition there is, the smaller the market for satellite
This is actually one of their biggest market opportunities. How do you think the backhaul for 5G towers works in extremely remote locations?
Like I said, terrible take.
> Nine out of ten people have cable already.
More like 8.2 out of ten. Either way the remainder is still a pretty decent market. And that's just talking about people in the USA. About 75% of Starlink subscribers are outside the USA.
> and the poorest 1% at that
Not by a lot. People who live in remote areas in the USA tend to have much less money overall, but they tend to spend much less money overall, leading to a similar amount of buying power. Someone who lives remote is more likely to own their home outright or have a relatively small mortgage. Their socio-economic status can appear numerically depressed because the numbers generally don't account for non-monetary consumption. (You got paid a salary and bought salmon from the supermarket. Remote dude fishes for salmon in a local stream. You both traded your time for salmon, but remote dude's salmon is invisible to GDP statistics.)
And furthermore, for them, Starlink would be budgeted for like an essential service rather than a luxury convenience.