Space Exploration Technologies Corp. (SPCX, Financials), the rocket and satellite company better known as SpaceX, is getting a clearer foothold inside Britain’s military communications network.
Britain has spent nearly $40 million on SpaceX satellite services and operates about 1,000 Starshield terminals alongside 500 Starlink terminals.
The interesting part is not just the money. Britain is the first country outside the U.S. to publicly confirm using Starshield, SpaceX’s military and intelligence communications service.
The British Defence Ministry began using Starlink in 2022 before shifting operational military communications to Starshield. It has spent about £13 million on Starshield terminals and airtime and £16.5 million on Starlink.
Starshield is not cheap. An unlimited British plan costs £25,000 a month, while terminals run between £4,000 and £7,000 each. In return, customers get stronger encryption, higher network priority and military-specific service terms.
The U.S. government has already awarded SpaceX more than $6 billion in multiyear Starshield contracts. New Zealand is also testing the service for military operations.
For investors, Britain matters because it shows Starshield moving beyond its U.S. government base. If more allied militaries follow, defense could become a much larger piece of SpaceX’s satellite business.