SpaceX has caused a 77% drop in price for transferring data by satellite
According to a new study, SpaceX’s lower launch costs and its Starlink satellite constellation has caused a 77% drop in the price for transfering data by satellite in the past five years.
The costs involved in providing capacity have also declined in recent years following satellite manufacturing advances — and greater availability of launches thanks primarily to SpaceX. The average cost base of supplying HTS capacity in North America has dropped from around $40 a month per megabit per second in 2019 to about $12 in 2023, according to Euroconsult.
However, Euroconsult expects costs to stabilize over the next two to three years in the Americas and Europe, potentially slowing down the decline in capacity prices.
I think Euroconsult might be wrong about that last conclusion. Increased competition in the launch industry as well as the launch of other satellite constellations will force further drops in prices. The only threat to this continuing drop will outside forces, such as an overall economic collapse, war, or increased regulation.
According to a new study, SpaceX’s lower launch costs and its Starlink satellite constellation has caused a 77% drop in the price for transfering data by satellite in the past five years.
The costs involved in providing capacity have also declined in recent years following satellite manufacturing advances — and greater availability of launches thanks primarily to SpaceX. The average cost base of supplying HTS capacity in North America has dropped from around $40 a month per megabit per second in 2019 to about $12 in 2023, according to Euroconsult.
However, Euroconsult expects costs to stabilize over the next two to three years in the Americas and Europe, potentially slowing down the decline in capacity prices.
I think Euroconsult might be wrong about that last conclusion. Increased competition in the launch industry as well as the launch of other satellite constellations will force further drops in prices. The only threat to this continuing drop will outside forces, such as an overall economic collapse, war, or increased regulation.