SpaceX demands 5x price hike for Starlink used in Pentagon's Iran war kamikaze drones

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Musk's Pentagon poker game: paying up for Starlink drone guidance

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SpaceX told the Pentagon the military was underpaying for Starlink on LUCAS kamikaze drones. The company wanted the aviation rate of $25,000 per terminal per month, not the $5,000 land rate. The Pentagon balked, arguing drones used the connection for minutes. But with no alternative to Starlink's 10,000-satellite network, it agreed—almost doubling each drone's cost. Analyst Clayton Swope said SpaceX "certainly has the U.S. government over the barrel." The Pentagon is now eyeing 3,500 more Starshield subscriptions, but reliance on a single private firm remains risky. Musk has shown he'll pull the plug when it suits his interests.

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Iranians' internet lifeline stalled by Starlink pricing spat

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Starlink also became a tool to help Iranians bypass communication blackouts. The U.S. previously smuggled in 6,000 terminals, but Iran seized them and deployed jammers. The Pentagon then discussed direct-to-cell Starlink service. But SpaceX demanded a $500 million launch fee and $100 million monthly—alarming defense officials. It's unclear if a deal was reached. The Pentagon is seeking competitors, but none rival Starlink's coverage. The dispute shows how one company controls both military targeting and humanitarian internet access in a war zone.