It is! But their architecture should enable them to hit a much lower price point. Maybe it's just charging what the market will bear? If this is what they need to charge to be profitable, though, that indicates the satellite-to-satellite approach doesn't scale well, or they've been losing money.

If you selling a service that doesn't yet exist (or where you are an order of magnitude cheaper than the competition), usually you want to charge as much as you can while still selling all your inventory.

Your actual cost is irrelevant.