Elon Musk’s space company SpaceX has issued a notice to users of the space Internet service Starlink around the world, announcing that it will reduce subscription fees according to “local market conditions”, by up to 50% off. Dutch user Thomas Ricker claims to have been notified by SpaceX that it will reduce the cost of its Starlink RV subscription service, which usually costs him 124 euros per month. The notice reads: “From August 24, 2022, your monthly Starlink service fee will be reduced to 105 euros .”
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“The price reduction takes into account local market conditions and is intended to reflect the average purchasing power of our customers,” SpaceX said in the notice. In addition to the Netherlands, users in several countries have also received similar discounts.
For example, UK users reported that their Starlink service monthly fee was reduced to £7, from the original price of 89 pounds; Mexican users dropped to 1,100 MXN, while the original price was 2299 Mexican dollars. German users dropped to 80 euros, from the original price of 100 euros, and users in Chile and Brazil reported a price drop of about 50%.
In the U.S., where the dollar has surged against foreign currencies, the cuts appear to be slightly smaller. Users in Nevada reported that the Starlink subscription price dropped to $85 per month, from the original price of $110 (ab. But the Starlink page still shows that after a one-time purchase of a $599 hardware kit, the monthly subscription price is still $110.
Users from elsewhere in the U.S. said they had not been notified of any price cuts. So far, no one has reported that Starlink’s network speed has been reduced or data usage has been limited after the discounted subscription fee.
SpaceX and T-Mobile will hold a joint event later on Thursday, where Musk will announce plans to “add connectivity.” It’s unclear if the event is related to the new pricing. In addition to helping users deal with inflation, there may be two reasons for the price reduction of Starlink services:
First, Starlink is not the only service provider, there are many competitors now, including the Kuiper project supported by Amazon founder Jeff Bezos. Starlink may want to grab as many customers as possible before a strong competitor emerges in this small but lucrative industry.
Second, mass adoption of any product requires a guaranteed affordable price. Ever since the idea of a space-based internet was proposed, Musk has been articulating how it would change the world. The Starlink project will provide Internet access to the most remote places on earth, a goal that cable Internet has so far failed to achieve, but users in remote areas cannot afford high network fees. Therefore, slashing prices is a good way to appease existing users and cement trust. In addition, there is a word-of-mouth effect.
