Just when you thought SpaceX’s Starlink internet service had settled into a steady pricing groove, Elon Musk’s satellite broadband provider is switching things up again. This time around, it’s all about supply and demand.
In an email firing off to customers this week, SpaceX announced it will be raising the monthly subscription fee for Starlink residential users by $30 in “areas with limited capacity.” That means instead of paying the standard $90/month rate, those unlucky starlink-ers will now be forking over $120 starting on June 10th.
On the flip side, SpaceX is gifting a $30 price reduction to customers living in “areas with excess capacity,” dropping their bills down to $90/month. The motivation? Apparently having too many subscribers concentrated in certain markets is straining Starlink’s ability to provide optimal service.
It’s not the first time SpaceX has deployed this geographical demand-based pricing strategy either. Some longtime users have reported being slapped with the higher $120 tier for nearly a year already in bandwidth-constrained regions like parts of New Jersey.
Given Starlink’s aggressive global expansion, with over 3 million users across the world hopping onto its satellite internet access, differentiating pricing seems to be SpaceX’s chosen method for keeping ahead of excessive demand curves. Whether it feels arbitrary to some or not, that tiered model is likely here to stay.
Of course, with the company’s future plans promising faster new gen satellites and improved density capabilities, (SpaceX’s Orbital Laser Network: The ‘Light Speed’ Future of Starlink), hopefully the $120 premium pricing tier becomes the exception rather than the rule sooner rather than later. Space-based internet was supposed to be the great service equalizer, after all.
Related
SpaceX is Now Selling Starlink Directly on Target’s Website
Starlink’s Cellular Direct to Cell System Dreams Are Coming True, Works Indoors