Starlink

The cost to connect each of the U.S. military’s Low-Cost Uncrewed Combat Attack System (LUCAS) one-way attack drones to space-based networks has risen from $5,000 to $25,000 a month, according to a new report. This is said to be the result of a switch from using the commercial Starlink network to its more secure government-focused cousin Starshield, which SpaceX demanded after extensive use of LUCAS drones in the latest conflict with Iran. The Pentagon has pushed back on the story, but it still highlights how critical SpaceX’s networks and other space services have become across the U.S. government, which TWZ has previously explored in detail.

Reuters first reported on the price increase to connect the datalinks on LUCAS drones to SpaceX’s space-based networks earlier today. The story cites anonymous sources, as well as Pentagon documents the outlet says it reviewed. This follows the recent announcement that the Pentagon is working to make LUCAS more autonomous with new artificial intelligence (AI) driven swarming capabilities, which could impact future connectivity demands.

Produced by SpektreWorks, LUCAS was developed in close cooperation with the U.S. military. It is a reverse-engineered clone of the Iranian-designed Shahed-136 and has a unit cost of around $35,000. The American drone already comes in multiple variations, and there is a related target drone design for use in training and test and evaluation activities. Versions fitted with miniature beyond-line-of-sight satellite datalinks, allowing for dynamic control and for their progress to be otherwise monitored after launch, have been a fixture in official pictures of LUCAS drones in the Middle East.

In the video in the social media post below, the satellite communications terminal can be seen hanging from a cord on a LUCAS drone said to have been recovered largely intact in Iraq.

The U.S. military announced it had begun fielding LUCAS drones operationally last December with a special operations-led task force in the Middle East. LUCAS’s official combat debut came in the opening wave of strikes on Iran on February 28. U.S. Navy Adm. Brad Cooper, head of U.S. Central Command, subsequently described the one-way attackers as an “indispensable” component of that operation, dubbed Epic Fury.

What we know about SpaceX’s reported upcharge for LUCAS

“Within weeks of the United States launching its bombing campaign, SpaceX executives met Pentagon officials and argued ​the military had been paying about $5,000 for connection per terminal while effectively using a higher tier of service worth closer to $25,000,” according to Reuters. “SpaceX argued the ⁠LUCAS drones were operating under conditions that aligned more closely with its aviation tier subscription rather than a lower priced land or mobility service. Pentagon officials argued that the $25,000 price tag – a monthly fee – was designed for aircraft, not kamikaze drones that used Starlink connection for a matter of minutes ​or hours.”

“The Pentagon, which was ramping up strikes on Iran, ultimately agreed to pay SpaceX’s proposed price increase,” Reuters‘ report added.

The story also said this reflected broader “tensions” between the Pentagon and SpaceX that have been growing recently over Starlink fees.

“The Fake News media has the story wrong, again,” top Pentagon spokesperson Sean Parnell subsequently wrote in a post on X. “The claims in this article are simply not based in reality and do not reflect the close, effective collaboration between our teams.”

When reached for comment by TWZ earlier today before Parnell’s post, the Pentagon did not directly address Reuters‘ report.

“The Department of War is committed to fostering a competitive environment for commercial satellite communications and is conducting comprehensive market research to continuously monitor commercial offerings that align with government requirements,” a Pentagon official told us. “We are actively engaging with industry to identify innovative solutions and new entrants, ensuring acquisitions are inclusive of a diverse range of capable vendors.”

“The Commercial Satellite Communications Office is working on additional options with other proliferated low earth orbit partners as part of its strategy to leverage the unprecedented capabilities provided by the commercial SATCOM industry,” that same official added. “The U.S. Space Force is operating in accordance with the terms and conditions of its contracts.”

TWZ has also reached out to SpaceX for more information.

“It is a violation of commercial Starlink terms of service to use the terminal for weapon systems. This applies to all users and is shut down when discovered,” Elon Musk, who is the founder and CEO of SpaceX among his other endeavors, had written on X on March 1 in response to a post about LUCAS making use of Starlink. “There is a separate network called Starshield, which is operated by the US government. This is not under SpaceX control.”

SpaceX’s networks and the LUCAS cost equation

Though described as a “monthly fee,” Reuters‘ report indicates that the U.S. military pays the $25,000 only once to employ a LUCAS drone. As the piece points out, the Pentagon reportedly argued that it should get to pay the lower $5,000 rate because it was only using the network to support LUCAS in timeframes measured in “minutes ​or hours.” This is also in line with Reuters describing the added cost as effectively approaching doubling the LUCAS drone’s $35,000 unit price.

The entire point of these one-way-attack drones is to offer a lower-cost complement to traditional exquisite long-range strike munitions. The Tomahawk cruise missile, the unit cost of a current-generation version of which is generally said to be in the $2 to $2.5 million range, is often used as a point of comparison, although they are far from equal in many ways. The underlying argument for LUCAS also relies on the drone being relatively cheap and easy to produce, as well as employ in large volumes. TWZ laid all of this out in a detailed case for the Pentagon acquiring exactly these kinds of drones in mass, which we published just three months before LUCAS was confirmed to be in operational service.

A combined price tag of some $60,000 (the unit cost plus one month’s fee to connect to Starshield, as reported by Reuters) would still be far less expensive than the cost of a single Tomahawk. Using Starlink/Starshield terminals to begin with, beyond their connectivity advantages, offers the benefit of miniaturized high-bandwidth hardware that is being produced at a commercial scale.

Plans to make LUCAS more autonomous through the addition of new swarming capabilities could affect future network connectivity requirements for the drones. This will be enabled by the integration of Shield AI’s Hivemind autonomy software, as you can read more about here.

Shield AI flies Hivemind AI Pilot on 6th Aircraft

As TWZ recently wrote:

“For the time being, the U.S. military demands a human operator is ‘in or on the loop’ for kinetic or otherwise potentially deadly actions, as opposed to letting autonomous weapons choose what targets to attack on their own without any extra authorization. While less controversial morally, this can also be a tactical hindrance, slowing the swarm’s potential and adding complexity and vulnerabilities to its operations. The debate around this choice will only get more heated as adversaries bypass this elected restriction in order to get an upper hand in future combat scenarios.”

“As we pointed out in our initial reporting on LUCAS’s emergence, the fact that some of the LUCAS drones already include miniature SATCOM terminals is very noteworthy. After all, ‘human in the loop’ swarming would not be possible without this form of communications at the beyond line-of-sight ranges these drones fly. At the same time, an entire swarm can be controlled in this manner, even if just a handful are equipped with SATCOM terminals. While a swarm can be mesh networked within line-of-sight, it has to relay all the important information back to an operator. By using some of the drones as SATCOM relay nodes, the entire swarm can be controlled remotely from most places on the planet.”

“Regardless, the Hivemind AI pilot will allow appropriately equipped LUCAS drones to perceive their environment, make decisions, and act autonomously without continuous human input. Unlike conventional autopilots tied to fixed flight paths, Hivemind is designed to dynamically adjust mission plans, react to unforeseen conditions, avoid obstacles, and carry out complex tasks with minimal operator oversight.”

An increase in fees to connect individual SATCOM terminals to SpaceX’s networks, as well as cost savings on hardware, might further push the Pentagon toward a hub-and-spoke mesh-like networking arrangement like the one described above. LUCAS drones could also be employed in other contexts where satellite connectivity throughout the course of a mission might not be required, including if used essentially as fire-and-forget missiles aimed at fixed target coordinates. A SATCOM terminal would not be necessary at all for this kind of mission set, although it would be beneficial.

There is also a question about the total bandwidth that might be required to support swarms of LUCAS drones. From Reuters‘ reporting today, the increased load on its networks was a central factor in SpaceX’s demands for higher fees after strikes on Iran began. That being said, as already mentioned, Starlink/Starshield terminals are already designed with relatively high bandwidth use in mind.

These same considerations will apply to current and future programs that rely heavily on SpaceX’s satellite communications networks.

Dependence on SpaceX and U.S. national security

Specific cost figures aside, the LUCAS drone’s reliance on Starlink/Starshield underscores SpaceX’s dominance in the satellite communications market globally. It also highlights how essential the company’s space-based networks have already become for the U.S. military. TWZ explored this reality in detail amid open feuding between President Donald Trump and Elon Musk last year. The relationship between Trump and Musk has since rebounded, with the latter accompanying the President on his recent state visit to China.

Reuters reported today that there are some 10,000 satellites in SpaceX’s constellation supporting Starlink and Starshield, and that this represents more than 60 percent of all satellites currently in orbit. The company’s space-based networks, far and away, dominate the commercial satellite communications space globally. Offerings from competitors like OneWeb and Amazon Leo are more limited in scale and scope.

Watch SpaceX deploy Starlink satellites into space

This is reflected in the U.S. government’s ever-growing use of Starlink/Starshield on aircraft, ships, and in settings on land. This includes integration on some very high-value assets, including the U.S. Marine Corps’ VH-92 Patriot presidential helicopters and U.S. Navy aircraft carriers. There has also been a steadily growing push to use these networks to support tactical operations, as now highlighted by the link to LUCAS. The U.S. military had first demonstrated the ability to use Starlink to transmit targeting data years ago.

The U.S. government’s increasing use of Starlink/Starshield has already prompted operational security questions, even just in the context of supporting day-to-day peacetime operations, as you can read more about here. Starshield is designed to be more secure to help address these concerns for government customers.

At the same time, heavy use of Starlink on both sides of the conflict in Ukraine, including as a means of guiding one-way attackers in the air and at sea, has further underscored potential risks associated with the use of the networks in tactical scenarios. SpaceX and CEO Musk have faced particularly significant criticism in the past over limiting some Ukrainian use of the network. Actions SpaceX took earlier this year to block unregistered Starlink terminals also had major consequences for Russian forces, which were sent scrambling to find alternatives to fill the massive resulting communications gaps.

What SpaceX might have been prepared to do if the Pentagon did not agree to pay increased fees to support LUCAS is unknown. We also do not know what kind of protections are currently baked into U.S. contracts with SpaceX to prevent government users from being suddenly disconnected without warning. Regardless, as noted earlier, the Pentagon could deploy LUCAS swarms with just a handful of drones equipped with terminals to relay the critical info needed to control the rest of the formation, and LUCAS can still be used as a fire-and-forget weapon without any beyond line-of-sight connectivity, although this would greatly curtail its flexibility and, in some cases, its efficacy.

As the Pentagon official noted to TWZ today, there is a push to explore commercial alternatives to Starlink/Starshield and promote further competition in this space. At the same time, part of the attractiveness of Starlink/Starshield for the U.S. government has been the relatively low costs and other benefits associated with leveraging such well-established networks, as well as the knowledge base that comes along with that pedigree. Just today, the U.S. Space Force announced it had finalized a new Other Transaction Authority (OTA) agreement with SpaceX, valued at $2.29 billion, for work on the Space Data Network (SDN) Backbone program. The SDN is tied to work on new space-based sensing and targeting capabilities, particularly for missile defense, which could now feed into the Golden Dome initiative.

Beyond satellite communications, SpaceX is reportedly also now a critical player in U.S. military efforts to increasingly move air and ground moving target indicator (AMTI/GMTI) tasks into orbit.

On top of all this, SpaceX is also by far the top provider of space launch services globally, as well as other space-related services, including for the U.S. government. The core elements of Golden Dome, including the sustainment of planned batteries of space-based interceptors, require reliable, routine access to space at a frequency that only SpaceX can provide within budget constraints.

SpaceX looks set to remain a dominant force in this market space worldwide for the foreseeable future, and it continues to expand its presence, driven heavily by commercial demand. The company’s government contracts, though substantial, only account for around a fifth of its annual revenue, according to Reuters.

Despite the Pentagon’s response to the particulars of Reuters’ story today, being so heavily reliant on one provider for critical technologies still raises important questions not just for LUCAS, but for other efforts across the U.S. military that rely on robust and secure satellite communications connectivity.

Contact the author: joe@twz.com

Mukalla, Yemen – At the Mukalla Creative Hub, a man in a black T-shirt leans over a desk to help a colleague with his project, while other men remain fixed on their laptop screens. Nearby women sit in ergonomic office chairs, writing or scrolling on their phones. On the other side of the space in Yemen’s coastal city of Mukalla, a sleek cafe-style counter stands at the entrance, while colourful armchairs are neatly arranged and occupied by a few people working among rows of computers.

What draws entrepreneurs, remote freelancers, and students here is not just the stylish setting or uninterrupted electricity, but something far more essential: fast, reliable Starlink satellite internet.

“Four Starlink devices power the space, delivering speeds of 100 to 150 Mbps and allowing users to stay constantly connected,” Hamzah Bakhdar, a digital freelancer who also works at the hub, told Al Jazeera.

In a country where war has devastated telecommunications, eroded salaries and cut off remote areas, Starlink is helping create a small but growing digital workforce of designers, developers, teachers, and freelancers who can now work for clients abroad and earn far more than Yemen’s crumbling local economy would otherwise allow.

Internet access in Yemen has also been weaponised, with buried land cables sometimes cut, leaving parts of the country abruptly disconnected. The Houthi rebels, who are based in the Yemeni capital Sanaa and have fought the internationally recognised government since 2014, control the country’s major internet providers. That allows them to block websites they view as linked to their opponents inside and outside the country, including key platforms used by tech developers and remote workers.

The arrival of Starlink satellite internet has provided an alternative, allowing people to bypass the Houthis’ tight grip on telecommunications and stay online even in remote areas.

Mohammed Helmi, a video editor and motion graphics designer, was juggling projects for three clients in Yemen, Saudi Arabia and the United States. Thanks to the fast internet at the cafe, he no longer worries about losing connection or missing deadlines, problems he said repeatedly disrupted his work in the past.

“In the past, when I downloaded files to my laptop, it would stop as soon as my data ran out,” Helmi, a young man with a thin moustache, told Al Jazeera at the cafe. “I had to buy another gigabyte and start the download all over again. Because of this, I often had to turn down projects.”

Control over the internet

Starlink is operated by billionaire Elon Musk’s SpaceX company, and delivers internet by linking a ground dish to low-orbit satellites owned and operated by the company.

While other satellite internet companies exist, and others are quickly entering the space, Starlink is the only low-orbit satellite internet service legally available in Yemen after the internationally recognised government signed an agreement with the company in September 2024.

But it’s not for everyone.

The kits cost about $500, a price that remains unaffordable for the vast majority of Yemenis, living in one of the poorest countries in the world, where more than 80 percent of people live below the poverty line.

Owning a dish is therefore still a distant dream for many Yemenis desperate to get online.

University students, like Mariam, a student at Hadramout University, says that even buying internet vouchers from local providers who resell Starlink access is beyond her reach – let alone purchasing a device herself.

“People are using vouchers because they cannot afford Starlink devices, whose prices are very high,” Mariam, who preferred to be identified only by her first name, told Al Jazeera.

The Houthis have also reacted aggressively to the arrival of Starlink, launching a campaign warning people against using the service and threatening legal action against anyone found in possession of the device.

They have accused the company of serving as a “US espionage agent” and said it posed “a major threat to national security”. Experts have worried that data gathered over Starlink’s internet service could be used for “intelligence gathering and economic exploitation“.

There are also concerns internationally over the concentration of satellite internet services and infrastructure in the hands of Starlink, particularly in light of Musk’s ownership, with the South African-born billionaire increasingly associating himself with far-right causes in the United States and Europe.

Connecting Yemen’s remote areas

But despite Houthi threats and the high cost of the devices by Yemeni standards, Starlink has spread across the country, reaching areas that had long been isolated.

Omer Banabelah, a mobile app developer, said that before Starlink arrived, a visit to his home village in Hadramout’s countryside meant disappearing from the digital world altogether. He could not make a phone call, let alone connect to the internet, leaving him anxious that clients would move on when their messages went unanswered. With Starlink now available in rural parts of the province, Banabelah said he no longer fears losing work every time he travels.

“I can reply to their messages anytime, from anywhere,” he told Al Jazeera. “Work that takes 10 minutes with Starlink could take an entire day without it.”

Similarly, Yemeni teachers, struggling with poor and delayed salaries that have stagnated for years, have also benefited from the spread of the internet service, which has allowed them to offer uninterrupted online classes and earn badly needed extra income.

Raja al-Dubae, a school director in Taiz, told Al Jazeera that her school began offering online classes based on the Yemeni curriculum to Yemeni students living abroad in the United Arab Emirates, Saudi Arabia, Egypt and China in 2023. It started with just 50 students, with teachers connecting through local networks.

But when internet traffic surged in the densely populated city each afternoon, the connections would collapse, forcing teachers to abandon classes mid-session.

“Teachers were often disconnected from their students, and by the time the internet stabilised, the next class had already begun, leaving them frustrated and unable to finish their lessons,” she said.

Al-Dubae said she initially rejected her nephew’s proposal to buy Starlink because of the high upfront cost, but now regrets the delay. Since installing the service, the number of students has climbed to more than 200, revenues have grown, and teachers have begun earning better additional pay.

“With Starlink, the internet is very fast and reaches every corner of the school,” she said. “Teachers no longer disconnect from their students. I never imagined it would make such a difference. Videos load quickly, we no longer turn away new applicants, and our reputation for fast internet has spread.”

For Yemenis who have grown used to Starlink’s high-speed internet, and the better incomes and business opportunities it has helped create, the worst-case scenario is a return to the slow, unreliable service of local networks.

“Go back to the headache of local networks? Perish the thought. We hope the service will continue to improve,” al-Dubae said, scoffing at the idea of reverting to local internet providers.

Helmi reacted similarly. “If Starlink were cut off, I would be devastated and forced back into the local market, which cannot cover my expenses or living costs,” he said, shifting in his seat and smiling at the thought. “I would need to take on three or four jobs just to match what I earn from a single project from abroad.”