Given the area of functioning, particularly in the rural zones, there is no competition in front of Starlink. The other cable or fiber providers in such areas are costly, along with a fragile and fluctuating network connection.
So here, Starlink, even though expensive, is not THAT expensive. The speed and connection are much more reliable, and the installation requires a minimum amount of price.
Starlink offers basically five types of package plans.
- Starlink Standard: Price ranges from $90 – $120 per month. With 25-220 Mbps. It is best for connection for residential purposes and personal usage, set up at homes.
- Starlink priority: Here price range is $250 –$1,500, with an internet speed of 40-220 Mbps.
- Starlink Roam: Providing 5-50 Mbps data, this package costs $150- $200 per month.
- Starlink Mobility and Starlink Maritime: These are the most pricy packages, with a cost of $250- $5000 monthly. Both provide 220 Mbps data. These have a more rooted and reliable internet connection, used for business purposes.
Starlink here has chosen its niche very strategically as rural and remote areas need more competition for solid internet connection. It works well in such areas as compared to densely populated urban areas, where cellular network also works well enough along with other cable connections.
Many users live in regions that either have very costly cable connections but still need more stable internet connectivity. The signal could even come from only one particular spot in a whole area.
Also, the improvements in satellite internet connectivity have led to price reductions because the more advanced the connection, the more people demand.
It is essential to make prospects for cost reductions to meet users’ requirements and gain profits. Enabling faster internet with lesser hardware equipment, smaller antenna, and dish. Given all the improvements, it becomes integral for providers to be cost-efficient and majorly affordable.
From the time of its launch in 2020, Starlink has been in popular demand, given its unique service claims. Specific factors that affect the pricing:
- High demand, limited supply: The supply of Starlink services is minimal and only done by their authorized dealers. As the need for it is always relatively high, the prices too could be easily manipulated. People were willing to pay more to get a reliable connection.
- Competition: There is a vast market of satellite internet providers as well as cable and cellular data. So Starlink projects itself in a better way so that it can stand out from its competitors and give a more stable connection, especially in remote areas, at a comparatively less expensive rate.
Cost-Reducing Advances in Satellite Technology
Satellite technology has reached great heights in recent years, leading to better communication technology with internet services. So, to get their sales on track, the companies cut out on their manufacturing and operating costs.
They also make the products durable and reusable to maximize savings. But the cost cuttings must maintain the service quality, or that would cause nothing but loss of customers.
Potentially, to lower the pricing, there could be a cut out on custom duties on satellite equipment. Spectrum usage charges could also be reduced and adjusted with gross revenue to make the service more affordable.
The service providers have also made it possibly cheaper in the rural and remote areas that did not have a significant internet connection before. The cost in such locations is around $90, with a good internet connection.
Whereas in densely populated urban areas, the price is $120 approx. This way, Starlink’s satellite service will grow more in remote areas and stay above its competitors.
There have been talks of reducing the service costs of Starlink for a better customer base. As the service is a little on the higher end for most people, the Company has been thinking of making it more affordable.
It will help in bridging the digital gap between the different sections of people, making the internet accessible to everyone. The providers want to reach out to all areas of the World so that no one can lag due to the absence of the internet in today’s digital World.
The people of rural and remote areas, with their want for this particular satellite internet service, have led to the process of cost reductions and change in economies of scale in Starlink.
So Starlink aims to function in areas like these to grow its consumer base. Since mostly these areas are underdeveloped and not financially stable, the cost reductions have been decided to cut down for the user’s benefit.
Starlink continues to increase today, providing a considerably higher quality internet service with reasonable pricing. There have been certain hurdles initially that Starlink had to face in its journey.
- The SpaceX Company was banned from importing the Starlink kits because it did not have a valid Operating Licence.
- It did not meet the requirements of the Electronics Communications Act, where 30% ownership must be by historically disadvantaged groups.
- There had been a sale of unauthorized Starlink kits without any kind of authorization. Potential offenders to be imprisoned and shut down of the service.
- There were extremely high charges for the satellite service, and a proper fixed rate needed to be set. The prices were set as per the sellers, which caused havoc amongst the customers.
Also, there have been several consumer complaints about glitches in the server and device limitations.
The users of Starlink services have certain expectations regarding the prices.
- Comparatively cheaper yet better service: The users would want to have a service that would be more affordable in comparison to its other competitors. But also provide a good service.
- Affordably set monthly plans: An accurately fixed monthly plan chart is expected by the consumers from which they can choose which one they want as per their requirements. Given the monthly payment, affordability is an essential factor.
- Reliable connection: For more stable connections in remote and rural areas, the users are on the lookout for a service that will stay stable and glitch. Most, in fact, prefer to have the best quality service, whatever the price be. The connection must be able to withstand any situation.
With the promise of providing reliable internet in all areas has a significant drive in its pricing. With its high demand, users also have certain expectations from the providers, which would look into their side of affordability and quality service.
The Company, too, by providing the benefits of internet connection in remote areas, is strategically making its profits and eliminating competition. Initially facing regulatory hurdles, today overcoming them, Starlink stands as one of the most demanded internet service providers.