(Photo by Wolf von Dewitz/picture alliance via Getty Images)
The US is Starlink's biggest market, but customer growth in the country appears to have slowed in recent months.
This week, SpaceX told the FCC that it now had “over 1.4 million Starlink customers in the United States.” That's a relatively minor increase from December when SpaceX told the FCC it had "more than 1.3 million" Starlink customers in the US. "This growth is not slowing," the company told the US regulator at the time.
It's hard to say what has changed. SpaceX didn’t respond to a request for comment, but the numbers raise questions over whether Starlink might have tapped the US market dry.
(Credit: PCMag/Brian Westover)“Clearly, growth has slowed in the US, even while accelerating in other countries,” says satellite industry consultant Tim Farrar. “But the US remains by far the most important country for Starlink’s revenues, especially as the $120 monthly fee is higher than elsewhere.”
Since its debut in 2020, SpaceX’s satellite internet system has received rave reviews for its ability to deliver high-speed broadband to areas without access to reliable internet. It’s made Starlink a favorite among users in rural and remote areas. But the technology can be largely redundant for people living in cities or suburbs, which already have access to fiber networks.
To spur growth, SpaceX has been rolling out a variety of deals and discounts throughout this year to entice more consumers in the US to sign up for Starlink. This week, the company took its most aggressive approach yet, discounting the standard Starlink V4 dish nationwide from $499 to $299 in a promotion that’ll last for the next two months.
In addition, the company has mentioned offering a “Family Plan” for Starlink that could convince existing subscribers to spend more once the program rolls out. However, Farrar said SpaceX would need to drop the total cost for Starlink even more—including reducing the $120 monthly internet fee for residential users—if it wants to bring in more US customers.
“Starlink is now cutting the price of terminals in the US to reinvigorate growth, but will ultimately have to reduce the monthly fee significantly if it is to catch up with the sort of growth that Elon Musk aspires to,” he said.
The other growth driver could be the Starlink Mini dish, which the company released to all prospective US customers last month. The dish stands out for being a portable way to receive Starlink access. But for now, SpaceX has been pricing the hardware at $599 in the US market, although the company has been hinting it'll reduce the cost over time.