Key Takeaways
1. Starlink launched a new Residential plan at $40/month, offering speeds up to 100 Mbps with unlimited data.
2. The new plan is aimed at competing for federal funding in rural areas against providers like AT&T and Comcast.
3. Existing higher-tier subscribers can switch to the new 100 Mbps plan if available in their account.
4. The BEAD program allows Starlink to compete for government funding, despite not covering monthly subscription fees.
5. A 20% discount on the Starlink Standard Kit is available on Amazon.
After offering the lowest price ever for a Standard or Mini dish through a Roam plan, Starlink has now rolled out its most affordable satellite Internet plan to date.
New Residential Plan Details
The new Residential plan starts at only $40 a month, providing speeds up to 100 Mbps. Starlink claims this is suitable for two or three users in a household that engages in regular browsing or streaming videos in up to HD quality. This plan comes with unlimited data and upload speeds as well.
This is a significant reduction in Starlink’s subscription price, since the next tier, the Residential Lite plan, is priced at $80 a month and can reach speeds of 250 Mbps. It’s worth noting that there is also a $60/month plan available for two years, but that particular offer is aimed at returning customers who have previously canceled their service, enticing them back into the SpaceX satellite Internet network.
Competitive Landscape
The new $40 Starlink plan appears to be mainly offered in areas where SpaceX must compete for federal funding for rural connectivity against companies like AT&T, Spectrum, and Comcast. Earlier this year, when Elon Musk had some influence in the White House, the federal Broadband Equity Access and Deployment (BEAD) program changed its funding criteria for rural broadband to include satellite Internet providers.
This move has annoyed broadband companies that have to invest in laying fiber, as Starlink can participate in state auctions for the $42 billion in government funding for rural Internet by merely providing a free dish and offering speeds up to 100 Mbps, which is exactly what the new basic Residential plan provides.
Switching Plans
Subscribers on higher tiers have the option to switch to the 100 Mbps plan if it’s available for them. Starlink advises, “Existing Residential customers may switch to the Residential 100 Mbps plan if it appears as an available option in their account.”
However, the BEAD program does not cover the monthly fees for subscriptions, although some states may consider plan pricing as part of additional funding criteria. With Starlink now slashing the cost of its Residential plan to just $40 per month, it positions itself as competitive with fiber services in that arena as well. This strategy could help Starlink capture a larger share of the federal program aimed at providing affordable connectivity in “underserved” regions.
Source:
Link
