(Credit: EWY Media via Shutterstock)
Since December 2021, Carter Bond has relied on Starlink for high-speed internet, a lifeline for many Americans in rural and remote areas, where traditional broadband has often fallen short.
“Starlink was great when it came out and felt like a whole new world to have decent internet again,” according to Bond, whose California home sits just outside any cable or fiber optic internet options.
But now he wonders whether it's time to quit Starlink after surprise rate hikes that raised the price of a Residential Max plan to $130 per month. Bond is considering fixed wireless access services from AT&T and T-Mobile, now available in his area, which use 5G networks to deliver home internet. He says the plans cost $47 to $60 a month, respectively, and offer speeds similar to Starlink, which hasn’t improved broadband quality at his location.
“Don't get me wrong, I think [Starlink] is still a good product, but the price-to-performance ratio has definitely gone down for me,” he told PCMag. “If I could get the same service from 5G for over half the cost, it brings up a question: Why do I still need Starlink?”
Bond isn’t alone. Texas-based Kathleen Corazzo is also considering alternatives, such as Amazon’s Leo, an upcoming satellite internet service that promises high speeds. The only problem is that she, along with other subscribers, says she has no other option for now, underscoring the ongoing shortage of affordable broadband in rural America.
“Until Amazon gets Leo up and running, anyone that is in a remote area that has no other option is put into a position of having to make a decision between paying whatever price is set forth or doing without,” she said.
On social media, others have mentioned looking for affordable alternatives. “We got duped," wrote one longtime Starlink user on Reddit. “You guys [Starlink] are playing around with pricing like you are a brand new drug dealer feeling out the market.”
The Starlink price increase was actually relatively small, amounting to an extra $5 or $10 per month, depending on the plan. SpaceX last raised prices on Residential plans in 2023 and 2024. “Pricing has remained unchanged for most Residential customers for the past several years, and strong demand for Starlink reflects the value customers continue to see in the service,” SpaceX said in explaining the change.
(Credit: SpaceX)Even so, the price hike triggered numerous discussions and angry backlash on Reddit, Facebook, and X this weekend. One issue is that the price hikes come right after SpaceX began offering discounts on the Residential plans for users in certain areas of the US and Canada. Some new users have reported receiving an email from SpaceX about the price increase right after activating the service, or even before they had received their Starlink dish.
Another sore point has been that the $5 Standby Mode now costs $10 per month, even though many Starlink users have been using it as a low-cost option to keep their portable Starlink Mini dishes online rather than completely shut off access. In response, some are canceling their Standby Mode subscriptions or say they plan to return the Mini dish SpaceX gave them as a free rental.
Sean Bond, another user in Texas, told PCMag he canceled his Standby Mode plan, saying he was “just sick of the endless deal altering,” after SpaceX removed the free pause mode last year. “If they need to increase actual service cost because the cost of doing business is higher, fine, but IMO [in my opinion] this whole thing is a cash grab,” he added.
The inconsistent pricing has also prompted some to allege that Starlink is guilty of using “bait-and-switch” tactics ahead of SpaceX’s upcoming IPO, which will list the company on the stock market. The IPO promises to raise up to $75 billion for the company, but it also means SpaceX will face pressure to keep shareholders happy by posting strong financial results each quarter, leading some to fear more price hikes will follow.
A former Republican state senator in Nebraska, Julie Slama, also tweeted that Starlink had “monopolized internet in rural areas” and questioned the Trump administration’s controversial decision to allow government broadband subsidies to flow to satellite internet providers as well as fiber.
“Today, we received notice our internet bill is going up another $500/year. Don’t like it? Too bad. You have no other options,” Slama said after previously paying $90 per month for Starlink’s Residential plan.
Kathleen Corazzo in Texas also feels stuck with Starlink. Her work-from-home job requires her to maintain a minimum internet connection of 65 Mbps in downloads, which is subject to arbitrary testing. None of her other local providers can offer consistent speeds.
Corazzo says it’s “inevitable” that Starlink will raise prices again at some point. “I am suspicious of when the next increase will be, and how frequently they will become,” she said.
'It's Still a Bargain'
Still, Corazzo is also reluctant to switch to another provider, or even downgrade her Starlink plan to the cheaper Residential 200Mbps or 100Mbps plans. “To be fair, I've had an excellent experience with Starlink,” she said after signing up for the satellite internet service about four years ago. “Overall, I am happy with Starlink. I think it just becomes a sore point with people because it's just a hard time right now with everything that is going on with gas prices and such. There've been many struggles economically in the last few years and I think people are just tired of getting hit in the wallet."
Despite the backlash, some users have come to SpaceX's defense. “Yes, prices going up are not fun. But, if you don't have any good options...it is still a bargain,” wrote one user on Reddit. Others hope the price increase will spur subscribers who have access to other high-speed broadband options to leave, freeing up Starlink’s capacity for existing users.
“I’ve always been shocked the monthly price [for Starlink] was as low as it was considering the absolutely mind-blowing cost to build and maintain this system globally,” wrote one user on Facebook. “So if a few extra bucks a month sends someone running back to Comcast or fiber internet… that’s probably exactly what should happen.”
Corazzo added, “This is the first time that I have seen such an uproar and such an opinionated response, as well. It has definitely gotten people speaking. But in my opinion, I think a lot of it is all bark and no bite. Many of us are complaining, but I bet if you check back with people in the future, many of us will still be right where we are today. Sometimes people just don't like change. People do not like to feel as though their power has been taken away or that they are forced to do something. And then, of course, there are those that just like to complain.”
SpaceX didn’t immediately respond to a request for comment. But the company has published a support page about the price changes that notes: “Starlink is rapidly increasing network capacity, expanding coverage, and improving reliability for customers. Strong demand for Starlink reflects the value customers continue to see in the service, and pricing may change as we continue to invest in affordable, high-performance products and services.”
The company plans on offering gigabit speeds later this year through next-generation satellites. The support page also notes: “If your service is currently receiving promotional, introductory, or discounted pricing, your monthly price will remain unchanged until that pricing period ends.”