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SpaceX Inks Deal For Starlink and Space Force · Elon Musk Podcast

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  Hi everybody and welcome back to the Elon Musk podcast.
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  Today we'll be discussing an essential milestone that SpaceX
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  recently achieved, securing its first ever contract with the US
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  Space Force for satellite communications via Star Shield.
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  Now, the contract was officially confirmed on September 1st,
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  according to Air Force spokesperson and Stefanik, and
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  we'll discuss how Star Shield operates over the existing
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  Starlink satellites and serves as a secured network exclusively
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  for governmental agencies. The deal has a budget ceiling of
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  $70 million and will support various arms of the US military
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  like the Army, Navy, Air Force, and Coast Guard.
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  And what makes this even more interesting is that the contract
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  comes on the heels of Spacex's role in the Ukaryan conflict,
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  where it provided Internet connectivity to the Ukrainian
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  military. The STAR Shield contract marks a
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  significant moment for SpaceX as it diversifies its service
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  offerings and the STAR Shield network designed for
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  governmental entities, will operate over the existing
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  infrastructure of the current Starling satellites.
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  Now to put it into perspective, SpaceX will provide what's
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  called end to end service through this contract, and this
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  comprehensive package includes everything from user terminals
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  and ancillary equipment to network management and various
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  other services. And the US Air Force
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  representative confirmed that the contract lasts for one whole
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  year with the possibility of extensions in the future.
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  With his contract financial framework, $15 million has
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  already been earmarked for SpaceX to be obligated by the
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  end of September. We have to consider that this is
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  not an isolated instance of Spacex's involvement with the
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  fence, and previously SpaceX had one other contracts.
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  And the Pentagon has already been categorized as a high value
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  buyer for SpaceX, and SpaceX has crafted 2 separate but
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  interlinked satellite communication systems, Starlink
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  for civilians and Star Shield for government.
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  And while both operate over the same Starlink satellite network,
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  they serve completely different purposes in completely different
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  clientele. Elon Musk clarified on the
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  platform formerly known as Twitter that Star Shield will be
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  under the US government's ownership and controlled by the
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  Department of Defense Space Force.
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  The civilian Starling network will remain independent and
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  won't participate in combat operations.
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  Now what this bifurcation allows is a dual use system where they
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  can serve different sectors without compromising on the
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  quality or security of services provided.
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  Now, this new US contract for the US Space Force certainly
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  isn't Spacex's first dance with the defense sector.
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  The Pentagon has relied on SpaceX for a number of rocket
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  launches, indicating a level of trust and satisfaction with the
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  services that they provide. And the work with the Department
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  of Defense and other military branches by SpaceX showcases the
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  versatility and adaptability of these technologies.
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  And the very nature of these contracts often necessitate
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  strict requirements for reliability, security, and
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  efficiency. Aspects.
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  Where SpaceX has repeatedly proven its mettle would be an
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  oversight to discuss the contract without acknowledging
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  Spacex's role in the ongoing Ukraine conflict.
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  And SpaceX has been providing Internet connectivity to
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  Ukraine's military, aiding their fight against invading Russian
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  forces from the beginning. The decision was not without its
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  complications, though. Last year, SpaceX made the
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  choice not to extend starlet coverage to Russian occupied
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  Crimea, a move that some say had a significant impact on
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  Ukraine's military operations. And these actions have garnered
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  attention even from policy officials, highlighting the
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  geopolitical influences SpaceX and its technologies, Wheel Now,
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  Spacex's involvement in global conflicts, and now its contract
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  with the US Space Force have led to a more nuanced role for the
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  company and in world affairs. And while Elon Musk doesn't hold
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  any official diplomatic titles, the influence of Spacex's
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  technologies, particularly in communications, is something
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  that can't be easily dismissed. Should be mentioned that earlier
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  in June that the Pentagon had already signed another contract
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  with SpaceX to provide satellite connectivity for Ukraine's
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  military. And as we move forward, they'll
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  be crucial to manage this new found influence responsibility
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  and ensure that the technologies are used for the betterment of
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  society and global stability. Now let's move on to Jeff
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  Bezos's rocket company. Completely separate topic, but
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  still in the realm of space. The recent FAA closure of the
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  investigation into Blue Origin, the New Shepherd rocket mishap
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  that took place on September 12th of 2022 of the unmanned
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  rocket faced A catastrophic engine failure, resulting in the
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  booster being destroyed in the capsule deploying its emergency
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  escape system. And according to the FAA, the
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  issue stemmed from a structural failure of an engine nozzle
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  brought about by higher than expected engine operating
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  temperatures, and this problem led to an unintended alteration
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  in the Rockets trajectory about a minute after its liftoff from
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  Blue Origins West, TX launch site.
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  However, the capsule which was carrying scientific payloads,
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  executed its emergency escape system and landed safely.
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  The FAA investigation concluded with 21 corrective measures the
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  Blue Origin is mandated to implement, including an engine
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  and nozzle component redesign. Blue Origin, though currently
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  grounded, indicated in the social media statement that
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  flights would resume shortly. Blue Origin, which was founded
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  by Jeff Bezos, had been successfully operating
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  suborbital flights since the summer of 2021, and in that
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  period New Shepherd launched 6 crude flights transporting a
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  total of 31 people with some notable passengers including
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  William Shatner and Michael Strahan.
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  So it's safe to see that the New Shepherd program was an integral
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  part of Blue Origins overall enterprise, constituting A
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  considerable chunk of the revenue and public reputation.
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  Now the FA A's decision to ground the New Shepherd program
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  temporarily has had a palpable effect on Blue Origins business
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  plans. For company that had ambitions
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  to send customers on 10 to 12 minutes suborbital flights, the
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  hiatus comes as a significant setback, especially with the
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  booming interest in space tourism.
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  And on the other front, Blue Origin recently announced a
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  change in leadership, CEO Bob Smith stepping down to be
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  succeeded by former Amazon executive Dave Limp.
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  Now this transition is likely to be pivotal as the company looks
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  to steer through the challenges brought on by the recent mishap.
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  Blue Origin is not alone in the commercial Space Flight area
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  though. The principal competitor, Virgin
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  Galactic, also had to go through a FAA investigation post Richard
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  Branson space trip leading to a two year pause in their
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  operations and Virgin Galactic resume flights with their first
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  paying customers in May of 2023 and it's currently preparing for
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  their Galactic 04 mission. Virgin Galactic and Blue Origin
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  are looking to capture a significant share of the space
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  tourism market, with ticket prices ranging from $250,000
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  initially around 450,000 currently for Virgin Galactic.
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  With a waiting list of more than 800 people, the demand for such
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  experiences is definitely apparent.
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  Interestingly, both companies have customers who have also
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  shown interest in their competitors.
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  For example, Sharon and Mark Hagel from Winter Park, FL had
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  flown with Blue Origin in March 2022 and are on the waiting list
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  for Virgin Galactic. The second trip with Blue Origin
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  is on hold, pending FA A's final nod for New Shepherd's return to
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  Flight. And while space tourism is a
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  noteworthy segment of Blue Origins plans, it is far from
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  being their only focus. The company has ambitious
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  projects that include the launch of its new Glen heavy lift
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  rocket from Cape Canaveral, FL, a lunar Lander for NASA's
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  Artemis missions, and a commercial space station named
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  Orbital Reef, And for Blue Origin, the Fe A's decision to
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  close the investigation may mark a turning point.
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  The company is required to adhere strictly to 21 corrective
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  measures outlined by the FAA, some of which may necessitate
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  significant engineering efforts. The timely implementation of
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  these measures is critical, especially with these ambitious
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  projects waiting in the wings, and the FA A's final report,
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  though not publicly available due to proprietary and US export
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  control reasons, states that public safety was not
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  compromised during the mishap. The FAA also clarified that the
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  investigations closer does not indicate an immediate
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  presumption of the New Shepherd launches.
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  Blue Origin needs to implement all corrective actions that
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  impact public safety and receive a license modification from the
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  FAA prior to their next launch. Regulations are an essential
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  aspect of any burgeoning industry and the commercial
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  space sector is no exception. What transpired with Blue Origin
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  can serve as an instructive episode for other companies in
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  the industry, underscoring the significance of safety measures
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  and regulatory compliance. Now, thank you so much for
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  listening to the show today. We hope you found this
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  discussion pertinent and beneficial, and if you enjoyed
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  today's show, don't forget to hit the subscribe or the follow
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  So thanks for doing that. And until next time, please take
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  care of yourselves and each other and I'll see you in the
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  next one.