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SpaceX’s Starlink Could Lower Internet Prices By Up To 40%



From the very beginning, SpaceX had a goal to take it high
speeds up Internet service in underserved places, creating competition in areas that
they currently have limited options or, in many cases, major monopolies causing
prices.

With its constellation of satellites in low orbit, Starlink
will be able to shake up the broadband industry by offering a new category of
broadband connection. Without the need to place expensive infrastructure like subway or
pole-based cabling required for current broadband options, SpaceX could do more
easily reach rural areas and start closing the digital
to divide
.

A Broadband Now study shows that, in addition to working to fill this gap, the introduction of a new Internet provider could reduce the price of Internet service by up to 40%. The chart below shows how adding additional providers to an area significantly reduces the average monthly cost of Internet service.

“An entirely new broadband option would likely reduce the lowest cost plan in a given zip code by an average of $ 2.41 per month,” notes Broadband Now. “If extended to the national stage, consumer household savings could be as high as $ 300 million per month, or nearly $ 3.7 billion per year.”

The benefits of bringing the Starlink service to the US certainly go beyond lowering prices. Early speed tests show promising results and many broadband customers in rural areas are showing that any high-speed Internet option would be an improvement over the options currently available.

Introducing a new competitor would likely help improve the quality and speed of Internet options in many areas as well. The graph below shows that with more competition, speeds tend to increase.

“If Starlink becomes a viable competitor in markets with only one or two options at the moment, the service could have the ripple effect of spurring incumbent providers to improve their offerings to maintain their advantage,” says Broadband Now. “This would be a positive move for consumers around the world.”




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