SpaceX faces daunting challenges if it’s going to win the internet space race

SpaceX's goal is to sell broadband internet service delivered by more than 1,000 small satellites. But industry experts say the company’s biggest challenge is financial. SpaceX must drive down the cost of sophisticated hardware and software to the point where it can deliver fast, reliable internet service at a price point that competes with cable or fiber-delivered broadband services, while finding enough underserved markets to provide scale.

SpaceX previously said its broadband coverage would be aimed at customers in the US and around the world, “including areas underserved or currently unserved by existing networks.” In mid-June, Chief Executive Elon Musk seemed to narrow the scope, telling shareholders of Tesla — Musk’s other high-wire venture — that the broadband plan’s main value was in providing internet access to “rural or semi-rural areas, places that don't have connectivity right now.” “It’s probably able to serve 3% to 5% of people in the world, but it’s actually not ideal for high-density cities,” Musk said. “It’s really to serve the unserved or poorly served.”