Clarifying on According to a Reuters report, SpaceX executives demanded higher payments from the Pentagon for satellite service used on drones during the Iran war, arguing that the military should pay for higher levels of connectivity.
starlink vs starshield
SpaceX operates two separate satellite networks. Starlink is a commercial broadband group that provides internet and connectivity services for business use. Starshield, on the other hand, is a more secure, military-focused version designed for defense, intelligence, and national security missions.
The Reuters report claimed that the Pentagon was paying $5,000 per terminal connection for drone operations. However, SpaceX argued that the military should pay closer to $25,000 per terminal for a more expensive aviation-grade service level, according to Pentagon documents reviewed by Reuters and sources familiar with pricing negotiations.
The drone in question is called LUCAS, a one-way attack drone made by Arizona-based company Spectreworks. The Pentagon argued that suicide drones use Starlink connections for minutes or hours, so higher aviation-level pricing – typically for aircraft – should not apply to LUCAS.
SpaceX officials believe the LUCAS drones were operating in conditions more closely aligned with the company’s aviation tier membership rather than those designed for civilian use. According to Reuters, the Pentagon eventually agreed to pay the higher connectivity fees, a development that nearly doubled the per-unit cost of the LUCAS drone.
trouble in Paradise?
In response to the Reuters report, Sean Parnell, assistant secretary of defense for public affairs, and Pentagon spokesman, denied allegations of a dispute with SpaceX.
“The claims made in this article are not based in reality and do not reflect the close, effective collaboration between our teams,” Purnell wrote on X. He also said that SpaceX remains a strong and valued partner for the Department of Defense.
Musk also dismissed any alleged tensions between the Pentagon and SpaceX. “The company did this, not the Pentagon,” he wrote on X, blaming drone maker Spectreworks for using Starlink instead of Starshield.
The reported controversy still highlights the US military’s growing reliance on SpaceX, which holds a near-monopoly on satellites in Earth orbit. Military use of Starlink-related drones became publicly known during Russia’s invasion of Ukraine in early 2022; Satellite networks have also been used in the ongoing war between the US and Iran, both for military operations and civilian Internet access.
Earlier in March, Musk responded to a claim that the LUCAS drone had an integrated Starlink terminal by saying that “using the terminal for weapons systems is a violation of the commercial Starlink terms of service.” He added, “This is not within SpaceX’s control.”
The line between civilian and military use is becoming blurred, especially when two highly interconnected satellite networks are owned by the same company. And that company currently dominates the industry, leaving little room for alternatives.
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