Yes, see the risks of starlink (solar storms) but with economics of scale and technologically advancements, the costs to put satellites in the sky will decrease in the next 5-10 years.
Today, if 250,000 people are currently using Starlink terminals (the world's population is 7.9 billion), that would be a revenue run rate of $25 million a month for SpaceX, given the $100/month charge for high-speed internet on the Starlink service. That translates to $300 million a year, and it’s on the low side because Musk said “over” 250,000 terminals. The hard costs of a Starlink launch are in the neighborhood of $15 million, meaning that launch cost alone per satellite is about $300,000, assuming 50 satellites per launch. https://www.forbes.com/sites/johnkoetsier/2022/02/14/starlink-hits-250000-customers-elon-musk-hints-spacex-booking-over-300-millionyear/?sh=5aee74137063
So that solar storm would have cost the company $15M or something...
Moreover, the EU is going to build a satellite internet system to compete with starlink --
https://au.pcmag.com/networking/92480/eu-to-build-satellite-internet-system-to-rival-spacexs-starlink. Initial service for the $6 billion satellite internet system is slated to begin in late 2024 before full service is offered in mid-2027.
The space tech race is heating up.
So the question remains: how will these type of competition affect FRX's business in the medium- long term? Starlink's services are expensive atm and will set you back $139 per month in Australia (and can be used anywhere in Australia). You'll also need to pay $709 in hardware fees, and $100 in shipping and handling. Yes these costs are expensive, but given technology advancements, one would expect them to drop in the next 5+ years.
It seems like FRX's business is two-fold (correct if wrong please): 1) connecting travellers throughout the world across 520 network operators in over 200 countries and territories, making it the preferred service for consumers and businesses worldwide. So if you go overseas, you can have internet access outside wifi areas and 2) providing their eSIM's on containers and transport for tracking purposes.
So why can't Starlink eventually create an arm to do both of these things and destroy FTX's business? Starlink is currently aimed at providing internet to remote locations throughout the world. But mobile is big business and is probably 50% of connecting people throughout the world, so as the economics of scale advances with these big satellite companies (now the EU has joined in) it might end up even destroying telecommunications providers like Telstra and the NBN as well. Yes, they are totally different to what FRX's business model is doing but playing bad cop here and trying to highlight any potential major red flags --- and ultimately eliminate them (that's the goal).
Open minded and want to hear other peoples opinions given the concerns raised in this post and the above.
To your first million,
-Trading For Millions.
(20min delay)