...
By Dan Gooding
Associate News Editor
0
Share
Newsweek is a Trust Project member
See more of our trusted coverage when you search.Prefer Newsweek on Googleto see more of our trusted coverage when you search.
Elon Musk, owner of global satellite internet service Starlink, on Tuesday accused the Trump administration of breaching the agreement his company has with the Pentagon amid reports of disputes over charges.
Musk took to his X social media platform to accuse the Department of Defense (DOD) of violating the terms of service for using Starlink at a time when the U.S. military is relying more and more on external companies and products, specifically those belonging to the billionaire.
"They made improper use of the Starlink civilian system for military purposes," Musk said on X. "Direct violation of terms of service."
Read More on U.S.
According to Reuters, which spoke to officials on condition of anonymity and reviewed internal DOD documents, the government and Musk's SpaceX, which owns Starlink, are at odds with each other over raised costs, which the company argued were necessary because the Pentagon had agreed to a civilian-level plan while using a higher tier of service for military operations in Iran.
In response, a Pentagon official told Newsweek that the Department of Defense was committed to fostering a "competitive environment" for satellite communications, including looking for additional options that would deliver "a diverse range" of vendors.
Pentagon spokesman Sean Parnell also took to X to denounce the Reuters report, saying SpaceX was still "a strong and valued partner".
Newsweek reached out to SpaceX for comment via email Tuesday afternoon.
...
Pentagon Starlink Use: What To Know
SpaceX sells a military-specific version of its product, called Starshield, which Reuters said the Pentagon had opted to use in a 2023 agreement. The terminals can connect to commercial Starlink satellites and more secure options.
The outlet reported that Musk's company officials argued that under the existing agreement, Starlink should not be used on the U.S.' LUCAS suicide drones in Iran. The drones are able to circle a target before diving and detonating on impact.
SpaceX was reported to have argued that this use more aligned with its aviation-tier subscription, at around $25,000 per month, which the Pentagon was not paying for. Instead, the government appeared to be paying $5,000 per connection.
The Pentagon has also been using Starlink to help Iranians bypass communications bans imposed by their government, but this effort has also reportedly caused tensions with SpaceX over pricing.
...
Does the Government Have a Choice?
It was not immediately clear if the two sides had been able to reach an agreement on pricing moving forward. Part of the issue appeared to be that the Trump administration has no clear alternative to using Musk's products, with no other company offering a clear competitor to Starlink.
The Pentagon has found the equipment critical to its military operations, Reuters reported. More than 6,000 Starlink terminals were smuggled into Iran by the U.S. in January, following the country's crackdown on protesters, so they could have access to the internet.
While some senior officials have reportedly been skeptical of the close relationship, which has the potential for hundreds of millions of dollars in revenue for Musk's company, the search for other options is ongoing.
The tension comes after Musk appeared to have mended his relationship with President Donald Trump in recent months. After the billionaire played a key role in the early days of the second Trump administration, the pair fell out over the president's spending proposals.
Musk then accompanied Trump on his recent state visit to China, where he appeared alongside other high-profile executives hoping to ease restrictions put in place by Beijing.
View 0 Comments
Submit Correction
View Editorial & AI Guidelines