SpaceX just hit a huge milestone for its Starlink internet service, with the company announcing that it's now reached over 500,000 pre-orders.  That announcement comes just a few months after SpaceX first opened pre-orders in February of this year, indicating that the rural internet service is off to a strong start.

Broadband internet access in rural America has never been good. If a company like Charter or Comcast doesn't operate in an area, people are usually stuck with DSL or satellite internet — both of which are slower and more expensive than options available in more populated markets. Starlink aims to be one of the few good internet providers for people in these parts of the country, promising up to 150Mb/s download speeds, low latency, and no data caps for $99/month. This is achieved using SpaceX's low-orbit satellite network, making the service considerably faster and more reliable than satellite internet services that came before it.

Related: Musk On Starlink Launch Date & Early Users Give Pricing & Speed Thumbs Up

During a live stream for the launch of its latest Starlink satellites, SpaceX operations engineer, Siva Bharadvaj, announced, "To date, over half a million people have placed an order or put down a deposit for Starlink." This refers to the current pre-order stage Starlink is in, which requires customers to place a $99 deposit to secure their spot in line. Once selected, they need to pay a one-time hardware fee of $499 and then $99/month for the service itself. While 500,000 potential users pales in comparison to the over 26 million internet customers that Xfinity has, it is a notable achievement considering pre-orders have only been open for three months.

Starlink Satellite Image

In light of this news, it's worth reminding that Starlink pre-orders don't necessarily guarantee someone will be able to get the service.  When someone makes a deposit for their Starlink pre-order, that "grants you priority within your region for securing Starlink Services when available." Furthermore, SpaceX says in its Terms of Service that "Placing a Deposit Payment does not obligate SpaceX to provide you with the Starlink Kit and Services and does not guarantee that the Starlink Kit and Services will be available to you." Most people that pre-order should be able to get Starlink, but none of this is guaranteed.

CNBC reporter brought up this point on Twitter, to which Elon Musk replied"Only limitation is high density of users in urban areas. Most likely, all of the initial 500k will receive service. More of a challenge when we get into the several million user range." Considering all the production delays Musk has had with Tesla over the years, it's not exactly encouraging to hear that SpaceX is already facing uncertainty with Starlink. It seems like the pre-order process has been mostly smooth sailing so far, but as those numbers continue to increase, it'll be interesting to see if Musk's tune changes at all. 500,000 pre-orders is a commendable number this early on, but if Musk is already warning of some customers not getting their SpaceX service, what'll happen as pre-orders reach 750,000, 1 million, and above? That all remains to be seen, but at least for right now, Starlink is off to a good start.

Next: Musk's Starlink Can Be Strapped To A Truck Or RV, But Not Yet

Source: CNBC, Elon Musk