Jim Anderson Says Elon Musk's Starlink Can Bring Cost Down By Building 'An Economic Model That Lets You Launch New Satellites Every 5 Years'

Jim Anderson praised Elon Musk‘s Starlink project engineered by SpaceX, highlighting its potential for impressive advancements due to its economic model.

What Happened: During CNBC’s “Last Call” on Thursday, Anderson pointed out that Starlink’s current technology doesn’t make it “cost competitive” with “traditional internet” and broadband services. The reason being, most of the satellites launched need to be replaced every five years, which can be an expensive process.

However, Anderson believes that if an economic model is developed that allows for the launch of new satellites every five years, it could lead to impressive advancements. “So, imagine if you've built an economic model that lets you launch new satellites every 5 years, you can do some pretty impressive things,” Anderson stated.

While Anderson expressed uncertainty about Starlink’s ability to compete with high-speed internet, he is confident that the associated costs will “definitely come down.”

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Why It Matters: Starlink has been making headlines for its seamless connectivity capabilities. Recently, Musk boasted about Starlink’s performance, claiming it provides consistent responsiveness from the tarmac to high altitude during flights. It also gained approval to operate in its 100th country, Zimbabwe, which has only 35% internet penetration. This move is expected to enhance internet accessibility in rural areas.

Additionally, Starlink’s introduction to remote areas, such as the Marubo tribe in the Amazon, has sparked discussions about its impact. Despite some controversies, Musk remains confident in the service’s benefits.

Starlink is projected to generate $6.6 billion in revenue this year, a testament to its growing subscriber base and market presence.

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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari