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Space Exploration Technologies Corp.’s (SpaceX) president and Chief Operating Officer (COO), Ms. Gwynne Shotwell, has outlined that the total addressable market (TAM) for her company’s Starlink satellite-based internet service is $1 trillion. The executive’s comments came during an interview she gave to Via Satellite earlier this year and published in May. Starlink is the world’s largest satellite constellation, and SpaceX is aggressively deploying spacecraft for bringing internet connectivity across the rural United States and the world.

The interview, which took place before SpaceX’s second official crew launch to the International Space Station (ISS) in April, covered several areas, including SpaceX’s response to the ongoing pandemic, its plans for Starship and Starlink’s future.

One of the biggest challenges facing Ms. Shotwell and her company right now is ensuring an adequate number of satellites are up in the sky for making Starlink profitable. According to figures revealed last year, SpaceX has invested roughly $70 million into manufacturing Starlink user terminals. In addition, reports from industry analysts suggest that the company subsidizes these terminals to encourage market adoption for the service.

When asked about the “thought process” behind Starlink and the shift from being an orbital launch services provider to an internet operator, she outlined that the service’s connection to a $1 trillion TAM for global broadband was one of the primary reasons behind the switch, as it allowed SpaceX to fund its long-term goal of interplanetary human spaceflight.

According to Shotwell,

Answering a question about how SpaceX will transition to dealing with non-corporate customers directly for Starlink, Shotwell stated that Elon Musk’s customer-centric experience from Tesla has helped the company.

She outlined that,

Via Satellite also asked the SpaceX executive about a potential initial public offering (IPO) for the company or Starlink. While SpaceX launches the Starlink satellites and is responsible for the brand, Starlink is officially operated by a SpaceX subsidiary. What this means is that Starlink and SpaceX’s finances are separate from each other, and based on accounting principles, SpaceX only has to recognize either a profit or loss from its internet arm.

In response to the query about the IPO, she stated that the traditional launch business with its heavy research and development expenditures is ill-suited to public market sentiment.

The SpaceX president believes that,

She also elaborated on how SpaceX continues to be customer-focused with Starlink. The internet service is currently in beta-testing, with the limited number of satellites in orbit and early-stage users providing SpaceX with a platform to finetune its services.

Shotwell outlined that,

We’re still learning the ground system and the network. But we’ve got a team that is so dedicated to providing a great experience. Everyone working on Starlink has Starlink. They know when the system has trouble spots, and they’re dedicated to fixing it. The network has to get better every day. We’re still stumbling and tripping and finding out new things about this system. But I’m confident that the system will be extraordinary. Then, it’s really left to the market. Is it something that the market wants and purchases? That’s the unknown, but given the response to date, it’s a pretty great product for those in rural areas.

Here are her thoughts on Starship and interplanetary exploration,

With her company successfully having landed a Starship prototype in one piece, the next step for SpaceX is testing the full platform complete with a Super Heavy first-stage booster. This test will then lay the ground for orbital and Martian flights, which Musk expects to commence in the coming years.