Re:Elon Musk owns Twitter: The story so far
by yumraj on Friday October 28, 2022 @07:54PM
(#33379511)
Quick comments:
42M Americans = ~10M households (assuming 4 per household).
Starlink is $110/month and upfront $599, which puts it outside many/most of these remote folks.
10M household is the TAM, so SOM would be just 5-10% of that, about 500K-1M households, or even less.
Regarding the cost of replacement of satellites and their operational costs, I have no clue.
Re:Elon Musk owns Twitter: The story so far
by Dylan16807 on Saturday October 29, 2022 @01:51AM
(#33381356)
2.5 people per household. So 7.5% of 42 million people would be 1.3M households. The current price is $1.3k a year, so that's $1.7B of service revenue just from the US. And there are more households that are interested even if they have "high speed" service already. So even with those numbers it looks pretty good.
That's just in U.S. Starlink is world-wide.
Back of envelope calcs:
$100/month == $1k a year.
1 million * $1k = $1 billion
10 million = $10 billion.
Estimated cost to replace all Starlink satellites every 5 years: $10 billion.
That's $2 billion a year.
Cost: $2 billion/year. Revenue: $10 billion/year. Profit: $8 billion/year.
Assuming only 25% of Americans currently without high-speed internet will opt for Starlink, not counting world-wide users, not counting commercial applications (boats, planes, gas stations), not counting using Starlink as internet backbone (i.e. alternative to under sea fiber).
Most likely Starlink will be a cash cow (and finance Mars colonization).
https://www.npr.org/2022/05/11/1098368187/42-million-america...