SpaceX raised the monthly connection fee for Starlink terminals used by the US military's LUCAS suicide drones from about $5,000 to approximately $25,000, applying aviation-tier pricing [1, 2, 3, 4, 5, 6, 7, 8, 9]. The Pentagon initially resisted the hike, arguing that the higher price was not suitable because LUCAS drones operate only for minutes to hours, unlike aircraft needing continuous connections [1, 2, 4, 5, 8, 9]. Despite this, the Pentagon ultimately accepted the price increase, nearly doubling the operating cost per drone from the roughly $30,000 before [1, 2, 4, 5, 8, 9]. The LUCAS drones, inexpensive US kamikaze units comparable to Iran's Shahed drones, rely on Starlink connections for operations [1, 2, 4, 9]. Since 2023, SpaceX has sold the Pentagon a military-specific Starlink version called Starshield under an existing agreement [1, 4, 9]. SpaceX executives met with Pentagon officials shortly after the 2026 US bombing campaign against Iran began to request the price changes [1, 3, 4, 5, 9]. Besides drone services, Pentagon officials are concerned about SpaceX’s proposal to offer direct-to-cell Starlink internet for Iranian civilians amid government communication blackouts. The proposal includes a startup fee of $500 million and monthly fees near $100 million, which Pentagon sources find costly [2, 4, 8]. SpaceX’s roughly 10,000 satellites represent over 60% of the global in-orbit constellation, overshadowing competitors like Amazon LEO and Eutelsat OneWeb [2, 4, 5, 8]. Pentagon’s Commercial Satellite Communications Office said it is actively seeking other satellite internet providers to reduce dependence on SpaceX. A spokesperson said, "The Commercial Satellite Communications Office is working to find alternative competitors" [4]. Clayton Swope, a senior fellow at CSIS, said the US government has limited leverage because SpaceX generates much of its revenue commercially and military contracts account for only about 20%, giving SpaceX strong bargaining power [2]. SpaceX is preparing for a major IPO expected in June 2026, which could be the largest in history [1, 5, 8].