The reason Starlink is so costly is that SpaceX does not have a financial incentive to lower the price. As the company ramps up its production and the demand meets supply, prices may change. But, even if it does, the prices will remain far above the equilibrium price, which will probably be $99 per month, or even more. That means the waitlist for Starlink will be years long. So, what are you going to do?
The company has stated that it does not intend to compete with Comcast in urban areas. However, it has warned that its technology will not be suitable for high-density deployments. It also says that it is not suited for a large number of people to connect to a single Starlink Service Cell. The downside is that it’s not suited for rural areas, where many people lack access to conventional broadband. So, the question is why the service is so expensive?
The main reason for the high price is the size of the constellation. It needs a minimum of 10,000 satellites to be fully functional. The company has shown signs that they want a total of 42,000 in its constellation. Currently, Starlink only covers areas between 45 and 53 degrees north latitude, which is too small for most people. In addition, Starlink will be available only in select regions of the US and Canada.
Unlike the other satellite internet companies, Starlink does not have multiple service tiers. Instead, it offers a premium tier with higher download speeds and a larger scan array. These premium tiers cost up to $500 per month and require a $2,500 upfront payment to purchase the equipment. These satellites are available for pre-order now, with plans to launch the service later in 2022. The price is expected to rise in the future, but for now, the company wants the first customers to be happy with their service.
For a rural area, Starlink internet service is the only viable alternative. It’s fast, reliable, and cheap compared to other broadband services, but it’s not for everyone. Currently, the company’s servers are in beta, and it has been difficult to find them. As a result, there are long waitlists for the service. While the company plans to sell the equipment in the future, the cost is still high compared to other internet providers.
Although the company’s initial beta version is free, the monthly operational cost of the service is still more than four times the cost of the full service. The beta costs $499 for equipment, and a monthly fee of $99 per month for the service. The average speed of the service is 57.2Mbps nationwide. For the same amount, Starlink has a speed of 103.1 Mbps. In rural areas, the speed may be much slower but it’s faster than most other providers in the area.
The company’s premium service is also more expensive. It costs $99 per month for a standard service and up to four billion dollars for the Premium service. The premium plan offers higher speeds, less latency, and less cost. The company also offers a range of other services that require high-speed internet, including video streaming. The difference between the two is the amount of data you can download at a time.
A preorder costs $99 per month. Then, the service comes with a $499 hardware fee, including a satellite dish, a router, a power supply, and $50 shipping. Besides that, Starlink can also double as a dedicated phone service if you’re not already connected. So, you can use your phone as a satellite to connect to the internet. This is the most expensive way to get high-speed internet in the rural areas.
A major advantage of Starlink is its low cost. It’s comparable to cable internet, and the costs are comparable, but the service does not have data caps or throttling. Those who use a limited amount of data should be happy with the limited service. Using this service is more convenient and cheaper than using cable or fiber internet. And the data caps and throttling aren’t too high.