SpaceX’s Starlink can reduce internet prices by up to 40%


From the beginning, SpaceX aimed to bring high-speed Internet service to underserved locations, in areas with limited options at present, or in many situations, the monopoly creates competition in areas that generate higher prices.

With its low orbiting satellite constellation, Starlink will be able to shake up the broadband industry by offering a new range of broadband. Without the need to put in expensive infrastructure such as underground or pole-based wiring required for current broadband options, SpaceX could more easily reach rural areas and start turning off digital segmentation.

Broadband Now studies show that, in addition to working to close that gap, introducing a new Internet provider can reduce the cost of Internet service by up to 40%. The chart below shows how adding additional providers to a sector significantly reduces the average monthly cost of Internet service.

“The completely new broadband option reduces the minimum cost plan in a given zip code by an average of $ 2.41 per month,” Broadband Now notes. “Consumer home savings could be as high as 300 300 million a month, or about 7 7.7 billion a year, when taken forward nationally.”

U.S. So the benefits of bringing Starlink service are definitely higher than lower prices. Early speed tests show promising results and many broadband customers in rural areas point out that any high speed internet option would be an improvement over the existing options available.

Introducing new competitors has the potential to improve the quality and speed of Internet options in many areas. The chart below shows that with more competition, the speed increases.

Broadband Now says, “If Starlink can currently be a capable competitor in only one or two options markets, providers looking to improve their inings to benefit the service could have a backlash,” says Broadband Now. “This will be a positive move for customers everywhere.”