Peeking into Starlink's Role Behind SpaceX's IPO Ambitions

Discussions regarding SpaceX’s initial public offering (IPO) plans almost always centre on one main aspect: Starlink. This satellite-based internet service has grown rapidly, transforming from a mere engineering project into the primary revenue machine supporting the valuation of the world’s most valuable private company. The SpaceX IPO is estimated to occur at the earliest this summer, with a projected valuation of $175 billion, or approximately Rp29,750 trillion (assuming an exchange rate of Rp17,000 per US dollar). Beyond that, SpaceX’s core businesses, including rocket launches and Starlink, have recorded strong performance with an EBITDA of around $6 billion. Analysis of Starlink’s business model and expansion strategy is a key factor in assessing the prospects of the SpaceX IPO. Starlink is a global broadband internet service delivered directly from space. To date, the service has reached more than 9 million customers across various segments, from households and businesses to governments. Its technology relies on thousands of satellites in Low Earth Orbit (LEO), positioned at altitudes of around 340 to 750 miles from the Earth’s surface. The current Starlink constellation includes more than 9,600 active satellites, accounting for about two-thirds of the total active satellites in the world. SpaceX even launches around 70 new satellites each week, a figure that reflects industrial production rather than a conventional aerospace project. On the device side, the company is also targeting production of up to 15,000 Starlink devices per day, with a strategy to expand internal manufacturing. This large scale creates significant cost efficiencies while enhancing bargaining power in the supply chain.