Elon Musk’s SpaceX Starlink in talks with UK Gigabit project

Elon Musk’s SpaceX is in talks with the UK that the company’s Starlink satellite unit could potentially win funding under the government’s new $ 6.9 billion internet infrastructure program, CNBC confirmed.

UK Digital Infrastructure Minister Matt Warman recently met with Starlink executives, a person familiar with the talks told CNBC, as part of ongoing talks with a number of tech communications companies for the “ Project Gigabit ” plan launched on Friday.

Sky News first reported on the talks, noting that UK Culture Secretary Oliver Dowden believes Starlink is one of the best options for providing internet service in hard-to-reach areas across the country.

SpaceX did not respond to CNBC’s request for comment on the talks, while the UK government declined to comment.

Starlink is the company’s capital-intensive project to build an interconnected Internet network with thousands of satellites, known in the space industry as a constellation, designed to provide high-speed Internet access to consumers all over the planet.

The company has launched more than 1,200 satellites into orbit so far, and in October began rolling out the first Starlink services in a public beta that is now expanding to customers in the US, Canada, UK. United, Germany and New Zealand – with service priced at $ 99. one month in the United States

The UK on Friday kicked off the first phase of the Gigabit Project, which is the government’s $ 6.9 billion (£ 5 billion) program to upgrade the internet service of more than one million people. homes and businesses.

The first phase of the project will bring together solutions offered by companies with a variety of delivery methods, including satellites and other “high altitude platforms”.

The Gigabit project represents the potential for SpaceX to add more government grants to Starlink, with the company receiving nearly $ 900 million in federal grants late last year as part of the broadband auction. rural area from the Federal Communications Commission.

The FCC awarded SpaceX the fourth-highest number of funds in the $ 9.2 billion auction, with the grants to be distributed as monthly milestone payments over the next decade. But SpaceX’s award has been met with protests from other US broadband providers, including DISH Network, with other internet service providers dismissing Starlink as a “science experiment” with “completely unproven technology.”

SpaceX responded, telling the FCC that complaints from other vendors have “no valid basis” and are a way to “cripple a competitor.”

SpaceX has continued to expand Starlink’s service in the meantime, with the public beta gaining more than 10,000 users in its first three months. Musk’s company plans to expand Starlink service beyond homes, asking the FCC to expand its connectivity authorization to “moving vehicles,” so Starlink can be used with everything from airplanes to ships on the move. passing by big trucks.

SpaceX also signed a deal with NASA in January, the U.S. space agency revealed last week, to cooperate on how to avoid collisions with the company’s Starlink satellites.

With the company adding more spacecraft to orbit each month, as its rockets launch 60 Starlink satellites at a time, NASA has said “increased interaction and partnership” is needed “to ensure the continued safety” of operations in. orbit.

“NASA has agreed not to maneuver in the event of a potential conjunction to ensure that the parties do not inadvertently maneuver each other. NASA will operate on the basis that the autonomous maneuver capability of the Starlink satellites will attempt to maneuver to avoid conjunction with NASA. assets, and that NASA will maintain its intended course, unless otherwise specified by SpaceX, ”the agreement said.

The agency also said it would work with SpaceX to “share technical expertise and lessons learned” to reduce the brightness of the satellites.

The company previously announced changes to the satellites to reduce brightness, following complaints from astronomers over the growing presence of Starlink satellites in the sky.