Key Takeaways
1. SpaceX’s Starlink is eliminating waitlists in some cities while introducing a higher congestion fee for immediate access.
2. The congestion fee has increased from $100 to $250, raising the initial cost of the Starlink Residential Kit to around $600.
3. Pricing for Starlink services varies significantly by region, with costs as low as $149 in Kansas due to discounts and no congestion fees.
4. Starlink is struggling to meet the rising demand for its satellite Internet services, leading to data throttling for heavy users.
5. Many users prefer to remain on the waitlist rather than pay the new congestion fee, indicating dissatisfaction with the increased costs.
Elon Musk’s SpaceX, through its Starlink division, has been handling satellite Internet services in the United States by implementing waitlists and additional fees in high-demand regions. In areas where Starlink has fewer subscribers, they have also offered discounts on equipment and waived certain fees.
New Charges and Waitlist Changes
Recently, the company has begun to eliminate waitlists in several cities, instead introducing a significantly higher congestion fee. Customers who were anticipating an invitation for the Starlink Residential plan in places like Sacramento, Phoenix, San Diego, and Central Florida received unexpected news when they finally got their invitations.
SpaceX has raised the congestion fee for those wishing to bypass the waitlist and access satellite Internet immediately, increasing it from $100 to $250. This change effectively brings the initial cost of the Starlink Residential Kit back to around $600, a price point reminiscent of earlier days. The set, including the dish and router, is priced at $349, with the new congestion fee of $250 plus applicable state taxes.
Pricing Disparities Across States
As a result, the total cost to become a Starlink satellite Internet user in Sacramento, CA, is nearly $630. Meanwhile, a customer in Kansas can obtain the full kit for just $149 due to Starlink’s Regional Savings program, which offers a $200 discount and no extravagant congestion fees.
SpaceX has been struggling with the rising demand for Starlink’s satellite Internet in the US, as the service capacity frequently lags behind the demand. They have even started throttling data for heavy users, including those on the Priority tier.
Customer Reactions
The increase in congestion fees appears to be a strategy to better manage subscriptions in areas with high demand. Many users facing the one-time charge of $250 have expressed a preference to return to the waitlist instead of paying more than what a Starlink Mini Kit costs for a Residential dish.
Source:
Link