SpaceX might be trying to stop bad actors from gaining access to the satellite internet service.
As SpaceX expands Starlink sales globally, the company has paused its reseller program, citing “overwhelming” demand from interested businesses.
“Starlink is no longer accepting applications to become an authorized reseller,” the company wrote on its support page, spotted by Tim Belfall, a director at UK-based Starlink installer Westend WiFi. “The application process has been closed due to an overwhelming number of submissions. We will update this page if the program reopens for new applications in the future.”
SpaceX already has a huge reseller network spanning about 200 vendors. Still, the change is surprising because it means turning down a substantial revenue stream from independent companies looking to resell Starlink. SpaceX previously mentioned that “to be considered, your company should have a business plan to achieve a minimum of $5M USD in annual recurring revenue for Starlink data service.”
In his post, Belfall added: “You need very deep financial pockets [to become a reseller], be willing to freely spend money, and have stamina as well as infinite patience.”
SpaceX didn’t immediately respond to a request for comment about the change. But it’s possible the company is trying to crack down on bad actors who are trying to acquire the satellite internet system. Last month, SpaceX also paused the related program “Indirect Reselling Program,” which didn’t require as much up-front investment, according to Belfall.
In a support page, SpaceX said it halted the indirect reselling program because “We want to ensure indirect arrangements are only used for truly strategic opportunities where there are real barriers (licensing, language, operational reach, or regulated markets). The current approach has created compliance risk and reduced visibility into end customers.”
So it’s possible SpaceX is trying to clamp down on potential liability risks as it prepares for an IPO that could raise up to $75 billion for Elon Musk’s company. The satellite internet service has been popular with all kinds of customers, including online scammers in Southeast Asia, drug cartels, and Russian military forces, as a way to receive connectivity in hard-to-reach places.
SpaceX is also now imposing a new “travel registration” policy that requires Starlink customers to submit their passport information and a live portrait when using the satellite internet service outside their home country. In addition, SpaceX is preparing to shut down a location data function that could help customers bypass GPS spoofing and jamming.
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