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SpaceX asked Pentagon for $500m launch fee for Iran Starlink service - report

May 26, 2026, 21:05 GMT+1

The Pentagon has clashed with Elon Musk's SpaceX over the cost of a plan to help Iranians bypass government-imposed blackouts through Starlink direct-to-cell connections similar to 5G service, Reuters reported citing two sources.

SpaceX proposed charging up to $500 million to launch direct-to-cell Starlink service for Iranians and $100 million a month to operate it, alarming Pentagon officials seeking ways around Tehran’s internet blackouts, the report said citing documents and a person familiar with the matter.

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