The possibility of Starlink suspending its services in Ukraine has led some analysts to contemplate the possibility of the government nationalizing the company.
David Frum, senior editor of The Atlantic, raised the possibility of the United States nationalizing Starlink in the event that Elon Musk decides to suspend the wireless Internet service that his company has been providing in Ukraine.
Frum explained through a series of tweets that it is irrational to think that Elon Musk will provide free connectivity in Ukraine indefinitely. In this regard, he stated that Ukraine’s Western allies should step forward to cover the company’s operating costs, which are estimated to be around $20 million per month.
It was always unreasonable, and is becoming unwise, to expect @elonmusk to provide Internet to Ukraine for free forever. Western allies should pay. And US should have a plan ready to nationalize Starlink fast if Musk cuts off Ukraine's connection to advance his political agenda.
— David Frum (@davidfrum) October 17, 2022
However, he considered that it is prudent for the Administration of President Joe Biden to have a plan ready to nationalize Starlink if Musk chooses to cut the connection, which is mainly used by the Army of that country to be able to operate against the Russian invaders.
“The United States should have a plan in place to nationalize Starlink quickly if Musk severs connection with Ukraine to advance his political agenda,” Frum posted on Twitter.
The analyst also explained that it would not be an unprecedented measure since he assured that the seizure of critical infrastructure for the United States government has occurred in the past in times of war or national emergency. He clarified that the government should pay reasonable compensation.
However, it is extremely complex to estimate what the valuation of Starlink could be, taking into account that it is not a public company that is listed on the stock exchange. In addition to this, it should be taken into account that its applications and its potential to generate income are significant once the creation of the constellation of satellites that the company plans is completed.
This means that it could potentially be a company whose value is comparable to technological giants such as Google or Apple.
However, everything seems to indicate that this scenario will not materialize because Elon Musk himself has already reported that he plans to continue offering Internet in Ukraine regardless of the losses that this will generate for his company. This is something he can afford to do since his fortune is roughly $270 billion.
Melissa Galbraith is the World News reporter for Globe Live Media. She covers all the major events happening around the World. From Europe to Americas, from Asia to Antarctica, Melissa covers it all. Never miss another Major World Event by bookmarking her author page right here.