SpaceX’s Starlink division has failed to live up to the grand expectations it set for itself and investors, according to a recent Wall Street Journal report. The report reveals that Starlink, which was touted to reach 20 million subscribers and generate nearly $12 billion in revenue by 2022, ended the year with just 1.5 million subscribers and $1.4 billion in revenue.
The revelation comes from a 2015 presentation used by SpaceX to attract investors, which projected ambitious growth for the satellite internet service. However, reality has fallen far short of these projections, highlighting the challenges of building a global satellite network.
“Starlink hasn’t signed up customers as quickly as SpaceX had hoped,” the WSJ wrote. “Toward the end of last year, Starlink had more than a million active subscribers, SpaceX has said. The company thought its satellite-Internet business would have 20 million subscribers as 2022 closed out, according to SpaceX’s 2015 presentation.”
Starlink’s slow customer adoption appears to be a significant factor contributing to its underperformance. While the company to have “well over” 1.5 million customers worldwide, it’s evident that it faced difficulties in achieving its initial goals. The report points out that in regions with access to cheaper, readily available high-speed broadband, its appeal is limited. Read more here.
