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Is Chip Shortage delaying Starlink coverage? What Viasat said?

Starlink exits beta, although production has been delayed due to "silicon shortages."

Sunday, November 21, 2021 | Chimniii Desk
Key Highlights

  • Starlink appears to have recently exited beta.
  • Viasat's latest application builds on its previous arguments to include information referenced by Starlink on its website.
  • These alert visitors to the fact that a semiconductor scarcity is impeding production, limiting Starlink's capacity to fulfil pre-orders.
  • Viasat refutes Starlink's claim that a chip shortage is to blame for the late delivery, arguing that the root cause is the Starlink system's undercapacity.
  • Viasat argues to the Commission that the SpaceX company is not qualified for the multimillion-dollar RDOF award based on Starlink and Musk's remarks.
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If you ordered Starlink broadband service and have not yet received your "Dishy McFlatface" satellite dish, a global chip shortage could be one of the reasons.


"Due to silicon shortages, production has been delayed, affecting our capacity to fulfil orders. Please go to your Account page for the most up-to-date estimate of when your order will be fulfilled "According to a FAQ on the Starlink support website, SpaceX stated.


Starlink appears to have recently exited beta. Elon Musk, CEO of SpaceX, stated in September that the service would exit testing in October, and the word "beta" was removed from the Starlink homepage's descriptions late last week. 


Additionally, the website has been modified to boast "download speeds of up to 200Mbps with latency as low as 20ms in most areas," an improvement over the previously reported "50Mbps to 150Mbps and latency of up to 40ms in most locations."


However, the transition from beta to general release does not always correspond to widespread distribution. Additionally, PCMag noted that planned Starlink shipment dates had been moved back to late 2022 or early 2023 in other portions of the United States. On the Starlink website, service times in additional places are expected to be "early to mid 2022."


"My account still shows a delivery date of mid to late 2021 for me, but I went to the main page and entered my address as if I were ordering afresh, and it now shows a delivery date of late 2022," one Reddit user commented last week on the Starlink subreddit.

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Capacity and demand for satellites were already significant concerns.


The chip shortfall is unlikely to explain why certain locations have later coverage periods than others, as this difference is explained by regional satellite capacity and demand. Starlink is largely aimed at rural areas that lack reliable wired Internet connectivity, and Musk has stated multiple times that it will not be able to reach everyone in more populated areas. Wait times can be shortened if signups in a particular location exceed the available slots.


"If you place an order in an area where we have coverage and capacity, you will receive an email confirmation with your order number, service, and shipment address, and you can examine your shipping details on your Account page. Generally, we ship Starlink Kits within two weeks "According to the Starlink website's FAQ.


While the two-week turnaround time for finished orders seems promising, service will be available only when SpaceX has sufficient satellite capacity and an available user terminal to send you. We have requested additional information from SpaceX regarding how the chip shortfall is influencing wait times and will update this article if we receive a response.

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SpaceX manufactured 5,000 terminals every week.


According to SpaceNews, SpaceX CFO Bret Johnsen stated in early September that the business was generating approximately 5,000 user terminals each week and that production would expand to "multiples of that" during the following few months. Given SpaceX's more recent announcement regarding the chip scarcity, it is unclear what the current rate of new user terminal manufacture is.



Musk seemed hopeful that the chip shortage will be resolved in the near future, describing it as a "short-term" issue. "There are a lot of chip fabrication plants being built, and I believe we will have adequate capacity by next year," Musk stated at a September 24 tech event, according to a CNBC piece.



Musk previously stated in May that SpaceX had received over 500,000 Starlink orders and would "very likely" be able to fulfil them all. "The only constraint is the large number of users in urban areas," he stated at the time in a tweet. "Almost certainly, the entire initial 500k will be serviced. It becomes more difficult as we reach the several million user mark."



If the chip scarcity does not significantly slow manufacture of satellite dishes for an extended period of time, Starlink's high rate of satellite launches should eventually make service more accessible. 


"If you place an order in a region where we do not have coverage or capacity, the order page will provide an estimated service date... Orders will be filled in each area on a first-come, first-served basis "According to the Starlink FAQ. "As the number of satellites in orbit increases, we will be able to handle more people per region."

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Starlink's Claim That a Chip Shortage Is Delaying Coverage Estimates Is Rejected by Viasat


SpaceX Starlink dish processorAccording to YouTube user Kenneth Keiter, the Starlink dish's application processor. DISHY DESTROYED!/Kenneth Keiter on YouTube


Viasat Inc of California has refuted assertions by Space Exploration Technologies Corporation's (SpaceX) Starlink satellite internet subsidiary that a semiconductor shortage is to blame for Starlink's inability to service a significant number of consumers. 


Viasat submitted comments to the Federal Communications Commission (FCC) in a number of proceedings, including a rule debate for the 12GHz spectrum, Starlink's application to be designated as an eligible telecommunications carrier, and the FCC's Rural Digital Opportunity Fund (RDOF), which awarded the SpaceX subsidiary nearly a billion dollars to provide internet coverage to unserved and underserved Americans.


Starlink Is Unable To Establish Sufficient Capacity To Meet the FCC's $886 Million Funding Requirements According to Viasat


In comparison to Starlink, which employs thousands of small broadband satellites to give internet connectivity to select people worldwide, Viasat's services are delivered by larger spacecraft. It has consistently opposed Starlink's $886 million RDOF award since the FCC approved the funds late last year.


The funds will be disbursed over ten years to offer internet connectivity to 35 states in the United States of America. Starlink is not the fund's largest recipient, with Charter Communications scooping up a cool $1.2 billion to span 24 states.


Following its prior criticism of Starlink's grant, Viasat turned its sights on SpaceX CEO Mr. Elon Musk. 


According to the company's FCC submissions, Mr. Musk's statements on the social media network Twitter disqualified his internet service from receiving RDOF funding because they raised concerns about Starlink's ability to satisfy its financial obligations. 


Due of this probable inability, the internet service was classified as a "risky endeavour," disqualifying the firm from the investment described before by Viasat.

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According to the company's statement to the Commission,


In short, while SpaceX apparently was willing to claim a clean bill of financial health in its RDOF applications, Mr. Musk has told a very different story to the public. That story has emphasized the inherently risky nature of the Starlink enterprise. In light of Mr. Musk’s characterization, the Commission can, should, and must conclude that Starlink is the sort of “risky venture” that the Bureaus have concluded should not be funded by the RDOF.

Starlink Viasat

According to Viasat's report of its investigation, Starlink is unable to comply with the FCC's RDOF criteria. The corporation maintains that Starlink 'ignored' this analysis. Ex Parte Presentation, June 1, 2021, Viasat, Inc.


Viasat's latest application builds on its previous arguments to include information referenced by Starlink on its website. These alert visitors to the fact that a semiconductor scarcity is impeding production, limiting Starlink's capacity to fulfil pre-orders. Additionally, they emphasise that certain clients may receive coverage only during periods of capacity availability.

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According to Starlink's website,


"If you place your order where we have coverage and capacity, you will receive a confirmation email with your order number, service and shipping address, and can view your shipping details on your Account page. We typically ship Starlink Kits out within 2 weeks.


If you are placing an order in an area where we don’t have coverage or capacity, you will see an estimated service date on the order page, which you can also view on your Account page. 


When service becomes available in your area, we will send you an email and you’ll have the opportunity to update your shipping, service, and billing details, or cancel your order. Orders will be fulfilled on a first-come, first-served basis in each area. We will be able to accommodate more users per area over time as we increase the number of satellites in orbit.


Silicon shortages have delayed production which has impacted our ability to fulfill orders. Please visit your Account page for the most recent estimate on when you can expect your order to be fulfilled."



Starlink user dish processor

The application processor for the Starlink user dish is visible during the KU university's breakdown.



Viasat refutes Starlink's claim that a chip shortage is to blame for the late delivery, arguing that the root cause is the Starlink system's undercapacity.



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According to the filing,



"Indeed, press reports indicate that SpaceX has significantly delayed in-service estimates for many areas into early 202311—a delay attributable to inherent limitations of the Starlink system, as opposed to any alleged “chip shortage,” as variance in service availability “is explained by satellite capacity and demand in each region.”



It then turns on Mr. Musk once more, claiming that the executive is abusing Starlink's capacity problem to induce consumers to sign up early and therefore drive demand. Mr. Musk tweeted in early October that Starlink's demand capacity can be met rapidly in some densely populated places, and that anyone interested in the service should sign up quickly to secure a position.


Viasat argues to the Commission that the SpaceX company is not qualified for the multimillion-dollar RDOF award based on Starlink and Musk's remarks.


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