Exclusive-UK deepens reliance on Musk's SpaceX, spending nearly $40 million on satellite services

Britain has invested nearly $40 million in SpaceX's satellite services, known as Starshield, deepening its reliance on Elon Musk's company for military communications. This spending, disclosed to Reuters in response to a freedom of information request, makes Britain the first country outside the U.S. to openly adopt Starshield, a service tailored for military and intelligence missions.

The defense ministry has acquired around 1,000 Starshield terminals and 500 Starlink terminals, having spent approximately £13 million ($17.6 million) on Starshield and £16.5 million on Starlink. This shift aligns with European governments' efforts to bolster their own defense capabilities amid concerns over Washington's commitment to the continent's security.

Despite Musk's public criticism of Britain's government during Keir Starmer's tenure, Starshield offers enhanced encryption, military-specific terms of service, and other advantages over Starlink. Britain's defense ministry began using Starshield in mid-2022 and has since transitioned some military communications traffic to this service.

While Britain maintains its own military satellite communications network, Skynet, and is a shareholder in France's Eutelsat, Starshield remains SpaceX's most lucrative and significant revenue source.