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The Street
The Street
Luc Olinga

Elon Musk's Promise to Ukraine Bears Fruit

Elon Musk promises a lot. 

And often he does not keep his promises. 

This makes the Tesla (TSLA) founder's detractors, who consider him a megalomaniac, say that they will only believe his promises when they see him take action. This was the case in the early days of the Russian invasion of Ukraine on February 24. 

Ukrainian Vice Prime Minister and Digital Minister Mykhailo Fedorov asked the billionaire for help on Twitter after he made a huge promise.

"@elonmusk, while you try to colonize Mars — Russia try to occupy Ukraine! While your rockets successfully land from space — Russian rockets attack Ukrainian civil people!" Fedorov wrote on February 26. "We ask you to provide Ukraine with Starlink stations and to address sane Russians to stand."

Only a few hours after the request from the Ukrainian official, Musk responded favorably.

"Starlink service is now active in Ukraine," the serial entrepreneur promised. "More terminals en route."

Musk Promised Starlink Terminals to Ukraine

The declarations of the richest man in the world did not reassure his many critics, who saw it more as a posture than a real commitment. But a few days later the same Fedorov  confirmed that the Starlink terminals had arrived in Ukraine and seemed to work.

"Received the second shipment of Starlink stations!" Fedorov posted on March 9. "@elonmusk keeps his word! Thank you for supporting Ukraine and peace in the entire world! @OMarkarova thanks!"

Musk offered his satellite internet service to deal with problems of telecommunications services in the country. Starlink is a constellation of satellites and connecting stations offered by SpaceX, Musk's aerospace company.

The Starlink satellite network could help bring an internet connection to areas hit by Russian army attacks.

Nearly two months after the arrival of the first shipment of Starlink kits in Ukraine, Fedorov has just indicated that the service continues to expand in the country. And above all that Starlink is a "crucial" support for Ukraine, which is also engaged in a communication war with Russia.

"Rough data on Starlink's usage: around 150K active users per day," Fedorov posted on Twitter on May 2. "This is crucial support for Ukraine's infrastructure and restoring the destroyed territories."

Starlink Expands in Ukraine

As the Russian war continues and some cities in the country are now occupied by Russia, Fedorov explains that Starlink is now a kind of lifeline for many of his compatriots. The Russian invasion has already caused many deaths and caused the displacement of millions of people. Material losses are also significant.

"Ukraine will stay connected no matter what," Fedorov said.

Fedorov's messages have provoked many glowing comments towards Elon Musk.

"Elon Musk is a very useful billionaire," one user commented.

"I think that @elonmusk should be invited to visit Ukraine," another user posted.

These praises are not really a surprise because the same Fedorov had already posted images last month, which helped make Musk even more likeable. The images show how Ukrainians were using Starlink terminals (also known as dishes or antenna).

In one, you can see people's interest in these mobile dishes capable of hooking up a satellite signal to provide an Internet connection to the population. And all around the antenna, many people are visible hooking up a Wi-Fi signal with their smartphones.

If Musk receives all the compliments, the financing of this aid is much more complex and involves U.S. taxpayers.

Who Is Paying?

On April 5, USAID (the United States Agency for International Development) said it had delivered 5,000 Starlink terminals to the Ukrainian government as part of a public-private partnership with American aerospace manufacturer SpaceX. 

"The Starlink satellite terminals will enable unlimited, unthrottled data connectivity from anywhere in Ukraine," the agency said in a press release. "The terminals will allow public officials and critical citizen service providers to continue to communicate within Ukraine and with the outside world, even if [Vladimir] Putin’s brutal aggression severs Ukraine’s fiber optic or cellular communication infrastructure connections."

A previous version of the press release, now withdrawn but available on social media, gives more details on the partnership with SpaceX. We learned that 1,333 of the 5,000 terminals are entirely funded by USAID and the rest are donations from SpaceX for a value of $10 million.

Previously, USAID purchased another 175 kits to transfer them to Ukraine via an air carrier connecting Los Angeles to Poland. The terminals are then transported by road via trucks. The agency also contributed to the delivery costs, up to $800,000.

To date, SpaceX has launched about 2,335 Starlink satellites, including spacecraft that were decommissioned or suffered failures, to support its global network, Jonathan Hofeller, vice president of Starlink commercial sales at SpaceX, said in March.

In February, the company unveiled Starlink's premium service, which includes a dish, a WiFi router, and a tripod, will cost users a total of $2,500 for the hardware and another $500 a month for the service.

The standard service costs $499 for the hardware and $99 a month. 

The service has 250,000 subscribers, and that’s across consumer, enterprise and many businesses, Hofeller said.

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