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Why did Teledesic fail, and when did low-orbit satellite internet become viable?

Formed since 2026-10-25 · ledger #56

Reusable-era launch prices fell about 20x; Starlink followed.

Short answer

Teledesic (1990), backed by Craig McCaw and Bill Gates, planned hundreds of low-orbit satellites for global internet and suspended work in 2002. At Space Shuttle-era launch prices, about $54,500 per kilogram by NASA's estimate, a constellation could not pay back. Falcon 9 advertised about $2,720/kg; SpaceX started Starlink in 2015.

Killing constraint
Launch cost per kilogram
E1 Cost curve
Crossing
2010
Falcon 9 first flight; advertised price about $2,720/kg to LEO.
Who won
Starlink (SpaceX)
founded 2015

A broadband constellation needs thousands of satellites replaced every few years; launch cost decides whether it pays.

The metric that moved

Cost to launch one kilogram to low Earth orbit (NASA estimate, 2018)

1981 $54,500/kg → 2010 $2720/kg (20.0× better for the category)

Cost to launch one kilogram to low Earth orbit (NASA estimate, 2018)$10k198119871993199920052011Teledesic stopsStarlink begins1981: $54,500/kg2010: $2720/kg$2720/kg

Hand-collected from NASA (Jones 2018); refreshed by review, not automatically.

Two points from one NASA paper: Space Shuttle (first flight 1981) at about $54,500/kg and Falcon 9 (first flight 2010) at its advertised $2,720/kg. Advertised prices are list prices, not audited costs.

Data table
DateCost to launch one kilogram to low Earth orbit (NASA estimate, 2018)
2010$2720/kg
1981$54,500/kg

Graveyard

Companies that died proving people wanted this. Capital shown where it was disclosed.

CompanyYearsCapitalHow it diedSource
Teledesic1990–2002—Suspended satellite construction in 2002source M

Who won once the constraint crossed

  • Starlink (SpaceX) (founded 2015) — constellation programme announced 2015; service from 2020 source

What changed, dated

  • NASA: the Space Shuttle cost about $54,500/kg to LEO; Falcon 9 advertises $2,720/kg, a factor of 20. source H

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