Starlink Update: New V3 Terminal, Gen2 Satellites & 100K Customers 📡

what up hyper change today we're doing an update on starlink spacex's satellite internet service um that is set to beam down internet to all around the world with this thousands and thousands of low-earth orbit satellites um this has been launched to consumers about a year ago it's the first like product from spacex that you can actually buy so this is potentially going to be a total game changer for the way internet connectivity works in our world maybe we could officially say bye to comcast for some of us um really exciting but behind the scenes i wanted to update y'all because i've been hearing some really interesting stuff about what spacex's team is working on to make this technology mainstream make it more affordable and make it work from their end as a financial uh sort of financially viable product and so the first step is dishy mcdish face this round thing that we saw um with starlink which was that you know dish that you essentially put on your roof that would capture the internet service so they were already on v2 of that sort of dish version thing and one thing you're going to think about a lot as i go through this episode is pace of innovation spacex is constantly integrating improving making their things better and this is just a huge example of that so they had v2 which was already cheaper and they're trying to bring the cost downs of this and now there's apparently a v3 of the dishy mcdish face which i think they're gonna have to change the name of because apparently now it's sort of like a rectangle thing and i'll try and render it so i did see a picture of it but i'm not allowed to show it so i will render it here of what i think it it looks like this is total speculation by the way but i think it's going to be legit so v3 of this new system much cheaper to produce much simpler much easier to ship and built for automated production so it sounds like spacex which has been in the sort of beta program for space uh starlink for this long um is sort of improving that final end product to really tailor it for the mass production to really get this to go all the way and it sounds like on the back end now this new sort of version of the dish is much more profitable than any previous version and has performance improvements from what i'm hearing as well so this is potentially the biggest product change we've seen in starlink since the company came out with this service about a year ago so i'm waiting anxiously for this to be officially announced by spacex or for them to be talking about this in the public because this sounds like a really big deal but it's not just on the dishes that spacex is innovating this is why the pace of animation is insane it's also on the uh the satellites themselves so spacex recently said in a new filing with the fcc just a couple weeks ago they're working on something called gen 2 next generation satellites these next generation satellites have different capabilities including these laser systems that are going to improve connectivity and it also says the satellites will some be somewhat larger and generate more power enabling them to support expanded capabilities now and accommodate additional payloads in the future so there's an interesting clue about how they're iterating on that satellite technology to potentially open up new business lines partner with other companies or do more more things these new satellites as well they're not gonna right now they're launching them with uh the falcon 9 rocket which shoots about 60 of these satellites up in the sky and remember spacex needs 10 000 or tens of thousands of these in the long run and they're probably constantly gonna need to be replacing them as well so you think about launching them as a critical component of the cost structure of this equation and now spacex is also saying they're gonna switch to their starship rocket they're much bigger rocket which is actually going to take us to mars to start launching these satellites as well and they're going to launch 400 of satellites at a time with this new star ship capability another interesting piece of news here is starlink recently filed with the fcc earlier this summer um to basically allow for testing of the starling satellites on aircraft and sea vessels we're talking about boats and planes to begin testing this technology um around the same time the verge also reported that spacex's starlink was in talks for several that with several different airlines for in-flight wi-fi i think this would be a huge um sort of awesome game changer i've i've been struggling with playing wifi for years it's just not that dope so if starling comes in with that that would be epic but this just is an example of yet another application of this technology and it's so interesting because now we're trying to figure out an arc invest put out a fascinating report about this trying to address the addressable market for starlight let's talk about the financials and the business behind it here of course since we're on hyper change but um starlink you know originally built as a way to connect the unconnected to connect people in rural areas and they'd be doing some amazing projects like that you know reaching out to communities who don't have connective connectivity helping them get online that's an amazing sort of you know uh i don't see charitable but like you know invest in the future you believe in changing the world for the better future that starlink has is this massive you know they even call like the homework app like if you're not connected to the internet it's really tough to keep up as a student and be educated in this new digital world and so by connecting everybody and having global internet starlink is poised to change that in a huge way but from a business angle you're thinking wait you know connecting these rural communities isn't the most lucrative part of the connectivity or internet segment and so as well even though elon musk has been downplaying the ability for starling to compete with cellular uh speeds you know in urban rural areas or fiber and if you're in a huge city with fiber it seems like starlink is gaining a lot of traction so maybe for the fastest internet in the highest density urban areas it's not going to replace it but for almost everything else starlink seems like an incredible option we're already hearing about so many different stories i've heard through the grapevine of my friends and people who maybe they live in rural places but they're normal big cities uh maybe they're on the suburbs and they're switching from their current provider to starlink and seeing much better speeds for almost the same price and so this is really impressive so i think the addressable market for starlink to me is in the hundreds of millions multi hundreds of millions of users that's just from the consumer end of what we're talking about and then you also have you know deals with planes uh what in-flight wi-fi ships cruises you know governments um armies navies all that sort of stuff i think it's going to layer on sort of this b2b internet segment that they're going to work on as well additionally in another terms of a pace of innovation is that terminal um that gets shipped to you um you have to pay a 500 upfront fee to get that well apparently gwen shotwell was saying that they're going to be able to cut that in half and then eventually cut that in half again so you think about starlink right now costs about 500 up front then 99 a month it sounds like they're gonna be able to at least cut that upfront cost dramatically down to about 125 in the long run and then maybe cut that monthly cost down as well therefore expanding the addressable market and so now let's talk about how big this is business today um and how big it'll get so elon musk said that starlink recently confirmed that a hundred thousand terminals had shipped or let's equate that to about 100 000 customers all paying 99 a month 100 times 99 times 12. we're looking at 119 million in annual recurring revenue today from starlink from just those first hundred thousand users so this is actually above my estimates which i had them hitting a hundred thousand uh subscribers by the end of 2021 it sounds like they've already hit that um so i did change that my estimates to 200 000 by the end of this year i don't know i'm just kind of guessing but i left everything else because i frankly think these are really aggressive um cost projections that i have and i actually already have them scaling down a 90 bucks a month monthly fee but it's getting up to a million users by 2022 4 million 10 million 25 million um you know so that seems like a lot of people but 25 million is still just such a small fraction of the global population and if you think about the addressable market of starting like it's literally going to be available in every single country um i don't think 25 million is an unreasonable number maybe 50 100 million in the long run is totally possible eventually connecting mars and that you know earth i think you know it's endless and you have elon musk's uh scheming on this so who knows where starlink will go from here and then you have little things like additional payload on the satellites could that unlock any business model i don't know there's tons of different ways to look at it but just from this consumer angle at 25 million uh subscribers paying 65 a month we're looking at 19.5 billion dollars in revenue so even though starlink today is just generating about 110 120 million this is gonna scale rapidly i mean they just built that in a year in beta and so remember this is recurring revenue as well so i think starlink is quickly poised to hit billions and billions of revenue you know spacex and its most recent private funding round was by about 74 billion dollars i think starlink alone will be valued at 74 billion or more in just two to three years if they continue executing and so the potential for this is staggering and what's to me the most exciting sort of cherry on top of all of this is starlink is owned by spacex spacex has huge ambitions to colonize mars to settle us there you know to expand our species and take over a new planet and that's just so exciting and exploring the stars and eventually building this sci-fi reality of where we're living in like star wars we're jetting off to different planets um we're living across the galaxy and solar system so so epic and starlink is the financial catalyst to actually make that work in a leaked wall street journal article four years ago they detailed plans about how starlink was really the key financial driver for spacex and was expected to give them the positive cash flow necessary to fund mars and so i think the word is going to spread here first of all you've had them generate 100 million plus recurring revenue a backlog of hundreds of thousands of customers with zero marketing just like tesla spacex and starlink is zero marketing it's all spread through word of mouth because people love the product and service they want to support the mission they want to be a part of this exciting future and so i think that storyline will continue you want to fund mars do it by getting dope starlink internet and that'll help give the cash flow to this company spacex to develop you know and colonize mars and so i just think that's super duper exciting and that's part of the storyline that will get baked in to why people are supporting strength there's a true why behind the company and even in more recent years you're talking about the starlink ipo which elon musk says will happen and they will spin it out of spacex and this is an even more genius sort of evolution of how spacex and elon are thinking about monetizing that starlink project to be able to fund mars faster because instead of just using that upfront cash flow from starlink's you know 100 million a couple billion dollars in revenue taking that profit and giving it to spacex they can start selling portions of the company of starlink and get a huge multiple on that revenue recurring revenue right now in the market 20 30 50 x multiples depending on the quality and growth rate of it so spacex could be getting 20 30 to 50 to one and that's on top of revenue not just profit to be able to fund spacex so i think this is the way this all plays out is starlink gets spun out of spacex for about a 20 25 30 billion valuation in a year or two maybe that's too low because demand is so high but then that valuation they could sell just 10 percent of the company raise two to three billion dollars fund that right into spacex to keep developing then starling doubles 60 80 billion dollars you sell another 10 of the company or just 5 to get more billions of dollars spacex could still control over 50 percent of starlink and be extracting tens of billions of dollars from this entity over the next five to ten years funding their mars ambitions so i think this is such a beautiful little case study to follow and it's amazing that we can all be a part of it by getting starlink internet so if you have starlink internet let me know what you think in the comments below also this new version of dishy mcdishface or flatty mcflat face or roundy rectangle mcrectangle face epic let me know if you have any info on that if you hear anything about it in the comments below this is hyper change with the starlink update see y'all next time peace so you

Channel: HyperChange

Views: 83,026

Keywords: Finance, Investing, Stocks, Stock Market, Financial Education, Starlink, V3, Terminal, New Starlink Terminal, Starlink Terminal, satellite, starlink internet, spacex, starlink ipo, starlink revenue, starlink valuation, starlink ipo date, starlink ipo valuatoin, starlink review, internet, satellite internet, elon musk starlink, elon musk, spacex ipo, rockets, falcon 9, starship, starlink wifi, starlink on planes, fcc, starlink users, starlink app, starlink kit, starlink news, space

Id: m6dJmJm8eyQ

Length: 10min 52sec (652 seconds)

Published: Tue Sep 07 2021