Using "Machines" as an Opportunity: SpaceX Raises the U.S. Military's Drone "Internet Fees"

On May 27, Xinhua News Agency reported from Beijing that the United States' "Low-Cost Unmanned Combat Aerial System" (LUCAS) drones have shown significant strike effectiveness in the conflict with Iran. However, just a few weeks later, SpaceX proposed to increase the service fee for using "Starlink" for this system.

"Internet Fee" Increase

On the 26th, Reuters cited two informed sources and U.S. Department of Defense documents, reporting that to justify the price increase, SpaceX executives met with Pentagon officials. The company stated that the Pentagon pays $5,000 per month for the "internet fee" for each LUCAS drone, but the drones actually use a more expensive "aerospace-grade" network. Therefore, SpaceX is requesting the Pentagon to pay $25,000 per month for the "internet fee" for each LUCAS drone.

One informed source said that the U.S. Department of Defense is dissatisfied with this, as the $25,000 service fee is intended for regular aircraft, while the LUCAS suicide drones only use satellite internet for a few minutes to several hours.

The report stated that at the time, the U.S. was intensifying military strikes against Iran, and the Pentagon ultimately agreed to SpaceX's price increase request, resulting in a sharp rise in the operating costs for each LUCAS drone.

Civilian Service Mistaken for Military Use?

After the Reuters report was published, SpaceX founder Elon Musk posted on social media platform X, claiming that the report was "not true," but did not provide further explanation. He also stated that the civilian "Starlink" communication service was improperly used for "military purposes." In another post, Musk said the fault lies with SpaceX, not the Pentagon.

According to a contract from 2023, unlike the regular civilian "Starlink" service, the service provided by SpaceX to the Pentagon is a military-specific "Starshield" satellite internet connection. The report cited another informed source saying that terminals using the "Starshield" service can connect to both the civilian "Starlink" network and "Starshield," the latter being an independent and more stable satellite internet system.

SpaceX has not yet responded to reports of the price increase for the LUCAS drones. The U.S. Department of Defense declined to comment on SpaceX's proposed price increase or the Pentagon's agreement to it, stating only that it is looking for other internet service providers and is committed to "fostering a competitive environment."

"Manipulating" the Pentagon

However, SpaceX has virtually no competitors. The recently exposed price dispute has intensified previous concerns that the Pentagon is overly reliant on SpaceX, giving Musk excessive influence over critical aspects of U.S. national security.

Clayton Swanson, a senior fellow at the Center for Strategic and International Studies, believes that in this contest, the U.S. Department of Defense can only be at the mercy of SpaceX. This technology company not only has a broad civilian market for its "Starlink" service but is also strong in multiple fields such as rocket launches and artificial intelligence.

In the early stages of the U.S. military strikes against Iran, the satellite internet connection provided by SpaceX was a key part of U.S. military operations, serving both drone systems like LUCAS and surface vessels. Informed sources revealed that after the U.S. began bombing Iran, over 10 drone operating systems started using SpaceX's "Starshield" satellite internet.

Documents obtained by Reuters from the U.S. Department of Defense show that the Pentagon is considering an additional order for 3,500 "Starshield" terminal internet services, including 100 higher-priced "aerospace-grade" services. It is currently unclear whether the two parties have signed a related contract, but if this deal is reached, it will bring SpaceX hundreds of millions of dollars in annual revenue.

SpaceX data shows that the company achieved $18.674 billion in revenue in 2025, with the network connection business centered around "Starlink" contributing $11.39 billion. According to estimates from the U.S. Securities and Exchange Commission, about 20% of SpaceX's total revenue comes from government-related business. (Yuan Yuan)