The US Department of Defense has significantly ramped up its expenses on the satellite Internet project in a low-earth orbit (LEO) to meet the increasing demand from all military branches. The Prolifeed Low Earth Orbit (PLEO) satellite program, which was launched just a year ago with a budget of $900 million, has now expanded to $13 billion, as reported by the USA Information Systems and the US space command.
This substantial increase in funding highlights the strategic significance of high-speed satellite Internet for military operations. The program is actively utilizing services like SpaceX Starlink and is also gearing up to venture into the Amazon market with the Kuiper project in the upcoming years.
The PLEO contract utilizes the IDIQ (Indefinite Delivery Indefinite Quantity) model, enabling the selection of contractors for specific tasks. Currently, 20 companies are competing for contracts within a five-year basic period, with the possibility of extension for another five years. Out of the initial $900 million budget, around $660 million has already been allocated, with a significant portion of orders going to Starshield – the military version of Starlink.
There is a growing demand for satellite services due to the user-friendly nature of Starshield in the field. The system is known for its easy installation and reliability in challenging conditions, which is invaluable for military operations. The contract’s flexibility allows suppliers to determine their own service approaches, leading to more favorable prices and a departure from traditional tariff schemes.
The PLEO contract, catering to all armed forces, offers better terms compared to one-time contracts. Initially, the project mandated training for equipment installation, but under SpaceX’s request, this requirement has been made optional as the installation of Starlink does not necessitate specialized technical skills.
Starlink, originally designed for the consumer market, has also demonstrated robust performance in military settings, where connectivity may face obstacles and interference. The built-in automatic satellite switching mechanisms enable swift communication restoration in case of any failures.
The PLEO contract includes provision for technological upgrades, facilitating the quick integration of the latest advancements. This collaborative approach with commercial suppliers marks a significant milestone in military technology development, offering access to innovations with rapid implementation.