Reply to post: Re: It doesn't add up

SpaceX's Starlink: Overhyped and underpowered to meet broadband needs of Rural America, say analysts

Justthefacts Silver badge

Re: It doesn't add up

You seem confused as to the difference between capital expenditure and operating expenditure. Capex has a depreciation lifetime, that’s what it does, this isn’t particularly short, nor particularly high.

Radio links and fibre optics require maintenance, replacement of line-cards with each new generation of technology also typically 5-10 years. Each of these satellites provides 30 Gbps for 5 years, at a cost of $0.5m, ie $100k per year. To put this in context: that’s not so different to what many *taxi drivers* depreciate their vehicle at.

Fibre costs maybe $10k per mile, and might easily have to trail 100 miles to the nearest trailhead. Costs $1 million to serve a small rural village. A single 5G tower probably gets you 5Gbps nowadays, depending on sectorisation. You reckon you are going to construct a whole 5G tower including its electronics for under $50k? So, six of those, and double or treble it for TCO including maintenance, power, back haul.

POST COMMENT House rules

Not a member of The Register? Create a new account here.

  • Enter your comment

  • Add an icon

Anonymous cowards cannot choose their icon