Britain has spent nearly $40 million on satellite services from Elon Musk’s SpaceX, newly disclosed figures show, deepening the United Kingdom’s dependence on the company for military communications at a moment when European governments are increasingly anxious about relying on American-controlled space infrastructure for national security.
Nearly $40 Million in Spending Disclosed
The figures, released in response to a freedom of information request, mark the first time a country outside the United States has publicly confirmed adopting Starshield, SpaceX’s satellite service built for military and intelligence missions. Starlink, by contrast, is marketed primarily to consumer and commercial customers. Britain’s Ministry of Defence disclosed that it operates roughly 1,000 Starshield terminals and 500 Starlink terminals, and has spent approximately £13 million, or about $17.6 million, on Starshield, including both terminals and airtime, alongside £16.5 million on Starlink.
Terminals and Pricing Breakdown
The ministry’s disclosure also revealed the cost gap between the two services. Two Starshield plans are currently available in Britain: a five-terabyte monthly plan priced at £5,500, and an unlimited data plan costing £25,000 per month. UK business customers using standard Starlink, meanwhile, can pay £1,830 monthly for two terabytes of global coverage, with cheaper options available for more localized or limited data plans. Starshield terminals themselves cost between £4,000 and £7,000 each, according to a person familiar with the matter, at least double the advertised price of business-grade Starlink terminals.
From Starlink to Starshield
Britain’s defense ministry began using Starlink in mid-2022, and Reuters reported in June that the ministry has more recently shifted operational military communications traffic toward Starshield. According to the ministry’s response, Britain began using Starshield airtime through its existing Starlink terminals in 2024 before purchasing its first dedicated Starshield terminals the following year. The ministry said it moved to Starshield after SpaceX mandated that Starlink be limited to morale, welfare, recreation and training purposes, explaining that Starshield instead offers “enhanced encryption, military-specific terms of service, the highest level of network prioritisation, flexible licensing arrangements, and expanded coverage.”
For the UK, Starshield relies on the same satellite constellation, ground stations and terrestrial infrastructure as Starlink, but operates through separate dedicated terminals and independent ground-based network gateways, the ministry said. Britain also maintains its own military satellite communications network, known as Skynet, and holds a shareholder stake in France-based Eutelsat, which runs the only major operational low-Earth orbit broadband satellite constellation aside from Starlink.
Musk’s Distinction Between Starlink and Starshield
SpaceX has increasingly emphasized the separation between its two satellite products. Musk has said publicly that Starlink is intended for civilian use, while Starshield is marketed specifically to government and national security customers. SpaceX did not respond to questions from Reuters, including which countries currently have access to Starshield.
Broader Military Adoption Since Ukraine
Militaries around the world have expanded their use of Starlink since Ukraine began relying heavily on the network following Russia’s full-scale invasion in 2022, using it for battlefield communications and drone operations. That wartime reliance has since fed into broader debates in Europe over whether governments should depend on a privately controlled American satellite network to handle sensitive or sovereignty-critical communications.
Pentagon Price Hike Controversy
The pricing gap between Starlink and Starshield has already caused friction within the U.S. government. Reuters reported earlier this year that SpaceX increased fivefold the price it charged the Pentagon for Starlink services used to guide kamikaze drones during operations against Iran, a move that angered some U.S. officials. Musk said the price increase reflected the fact that Starlink, rather than Starshield, was being used for those operations, arguing Starshield should have been deployed instead.
Other Nations Weighing Starshield
Britain is not alone in evaluating the military-grade service. New Zealand is currently trialing Starshield “to investigate its usefulness” in supporting military operations, a spokesperson for the New Zealand Defence Force told Reuters. In its most recent quarterly results, SpaceX disclosed that the U.S. government has awarded the company more than $6 billion in multi-year Starshield contracts, largely through two major U.S. Space Force programs focused on low-Earth orbit constellations.
Europe’s Push for Space Sovereignty
Britain’s growing Starshield footprint comes as European governments accelerate efforts to reduce their own dependence on U.S. satellite infrastructure. The European Commission has finalized an implementation agreement for IRIS², the European Union’s planned sovereign satellite constellation, expanding the project to 348 satellites after manufacturers agreed to build 66 more than originally planned. Of those, 330 will operate in low-Earth orbit and 18 in medium-Earth orbit, with first launches targeted for 2029. Unlike Starlink, IRIS² is not designed primarily as a consumer broadband service — it is intended for governments, defense and security forces, emergency services and critical infrastructure.
European officials have been explicit about the strategic motivation behind the project. EU Defence and Space Commissioner Andrius Kubilius said in January that Europe is “quite dependent on American services” and called for partners to accelerate work on IRIS², adding that he was confident initial services could roll out as early as 2029. Kubilius has separately framed the effort as a matter of connectivity and sovereignty “for all of Europe,” with guaranteed access for member states under full European control. Iceland and Norway have since joined the initiative alongside EU member states, and Germany has pledged tens of billions of euros toward broader space defense investment as part of the same strategic push.
SpaceX’s Record IPO and Starshield Contracts
The disclosure of Britain’s spending also comes months after SpaceX completed the largest initial public offering in Wall Street history. The company’s Nasdaq debut in June valued SpaceX at more than $2 trillion, with the company raising roughly $75 billion by selling more than 555 million shares at an offer price of $135 each. The offering made Musk the world’s first trillionaire and underscored the extent to which satellite services like Starlink and Starshield have become central to SpaceX’s business, alongside its rocket launch operations.
Musk’s Past Criticism of British Government
The scale of Britain’s reliance on SpaceX carries added political weight given Musk’s history of publicly criticizing the UK government. Musk repeatedly and publicly attacked Britain’s government during the premiership of Keir Starmer, who was recently succeeded as prime minister by fellow Labour Party politician Andy Burnham. That history has added to unease in some European policy circles about placing military-critical infrastructure in the hands of a company controlled by a single individual with a record of clashing with allied governments.
A Widening Trans-Atlantic Debate
Taken together, the disclosures illustrate the tension facing Britain and other U.S. allies: Starlink and Starshield remain the most technologically mature and widely deployed satellite networks available for military use, yet the cost, the pricing volatility seen in the Pentagon dispute, and Musk’s political unpredictability have pushed European governments toward building alternatives of their own. With IRIS² not expected to reach initial operational capability until 2029 at the earliest, Britain’s defense ministry is likely to remain dependent on SpaceX’s constellation for the immediate future, even as it continues to invest in Skynet and its Eutelsat stake as long-term hedges against that reliance.