About Will Starlink Get Cheaper, While Starlink is an extremely good internet for the traditionally underserved areas, it is very expensive.
For starters, its cheapest plan (the residential) goes for $599 (excluding shipping costs) for the equipment, plus a $120 monthly subscription.
Even more painful is that high-end plans cost as much as $150,000 for the hardware and $25,000 in monthly costs.
Looking at this price, many people wonder, Will Starlink get cheaper at some point to ensure affordability for all?
Let’s find the answer to this question in the article below.
Will Starlink Get Cheaper?
As I have demonstrated above, the Starlink internet is quite costly. The current price has increased by a certain percentage since the service’s inception in 2019.
For example, the Starlink residential plan equipment was going for $499, while the monthly fee was $99 in the US.
Currently, the price of the same kit is $599, and the monthly fee has increased to $120.
This cost has deterred many low household incomes, especially in developing countries.
The phenomenon is ironic, considering the company aims to provide affordable and reliable internet in underserved regions.
However, we can only hope that the service will get cheaper soon. First, the company continues to launch more satellites, which will improve the coverage and bring more people to share the cost.
Secondly, SpaceX CEO Elon Musk has always said that his company will achieve affordable internet for all in the long run.
Starlink Dish Installation
Why Is Starlink So Expensive?
According to My research, here as some of the factors that make Starlink so expensive
High demand
After its launch in 2019, Starlink took just two years to announce a million subscribers.
By May 2023, the company had over 1.5 users, vividly showing its high demand.
This demand can most be attributed to reliable internet service, which people are willing to pay more to get.
As you may already know, the price shoots when demand increases for any good or service.
Lack of Competition
To be honest, Starlink has an amazing business model. Think about supplying fast and reliable internet in remote areas where traditional services do not exist or are limited.
This model has made Starlink go to places others have not been, hence having a monopoly.
Other satellite companies like Viasat and HughesNet do not have such coverage.
If they do, it is not as fast or as reliable as Starlink Internet. When competition is lacking, the company with the market monopoly has the free ride to set its prices as it wishes.
Cost of technology
We can all agree that Starlink technology is top-notch and sophisticated. When discussing advanced, consider launching so many small satellites in LEO just 550 KM from the Earth.
Also, the company has to set up several ground stations for satellite communication.
Additionally, think about the advanced router and the phased array technology dish that self-heats and repositions at will.
All these, plus the launching of the satellites, can cost an arm and a leg. It would, therefore, explain the steep prices as the company tries to make a profit.
A satellite in space
The Debate on Why Starlink Could Get Cheaper
From the above points we can see that demand, cost of technology, and monopoly are the main causes of expensive Starlink.
Considering these points, here are my arguments for why Starlink could be cheaper:
Cost Effective Advancements in Satellite Technology
According to Starlink, manufacturing one user terminal costs an arm and a leg. This cost is notwithstanding the price of setting ground stations or making and launching satellites in space.
But the good news is that as technology advances, the ISP has found some production cost-reducing measures.
For instance, the company manufactures durable equipment to avoid extra costs in replacement.
Additionally, unlike when it used a one-time rocket to launch its satellite, it now uses a reusable Falcon 9 rocket.
You can expect these measures to reduce the overall cost of production, hence making the Starlink internet affordable.
Satellite launch
Consumer Expectations
It is common knowledge that all consumers, including those of Starlink, expect reliable yet affordable service.
Given that the individuals that Starlink targets are in rural and underserved regions, their income bracket must be low.
In addition, the company has ventured into many developing economies where several cannot afford the service.
With that said, we can argue that Starlink will look at these expectations and the income of these individuals and lower their prices.
Otherwise, it might be overtaken by other ISPs, such as Amazon project Kuiper, which promises affordable satellite internet by 2026.
Increased User Base
When writing this piece, Starlink had well over 1.5 million users across various countries worldwide.
You can expect this number to grow substantially in the next few years as the company improves its global reach.
We know it has launched over 5,000 satellites, with 12000 approved by the FCC.
When it reaches its ultimate target of 42,000, it will have global coverage and an expanded user base.
Now, many users mean the cost can be shared, which might be cheaper.
Conclusion
Generally, Starlink internet getting cheaper is a question of wait and see. Looking at what it has achieved so far and what it plans, it may be affordable.
Additionally, there is no question about improving its performance and reach in the long run.
However, we should also prepare if it gets more expensive. After all, inflation continues to rise, and the supply chain of items such as computer chips gets complicated.