Pentagon Increases Satellite Internet Spending to $13 Billion from $900 Million, 14x Previous Rate, Mainly for Starlink

Oct 29, 2024, 04:15 PM

The U.S. Department of Defense is significantly increasing its projected spending on low Earth orbit (LEO) satellite internet services, raising the budget from $900 million to $13 billion. This decision reflects a surge in demand from military operations and highlights the Pentagon's growing reliance on commercial satellite services. The Proliferated Low Earth Orbit (PLEO) Satellite-Based Services program, initiated last year with a budget ceiling of $900 million, has been expanded to accommodate this increased demand. The majority of the funding is expected to benefit SpaceX's Starlink, which has established a dominant position in the satellite internet market. Other companies, including Amazon's Kuiper, Iridium, OneWeb, and possibly Telesat, may also see opportunities as the program expands.