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Starlink’s New $40 Plan: Unlimited Data, But There’s a Catch

▼ Summary

– Starlink introduced a new $40-per-month plan called Residential 100Mbps, which is significantly cheaper than its existing $120 and $80 residential plans.
– The new plan offers unlimited data but is capped at 100 Mbps download speeds, making it a capped version of the Residential Lite service.
– It is suitable for small households or those with modest data needs, especially in areas lacking access to fast broadband.
– Current availability of the plan appears limited and may be targeted at less congested, sparsely populated areas to manage service quality.
– With broader availability, this affordable plan could attract customers from terrestrial broadband providers and increase competitive pressure.

SpaceX has introduced a new $40 per month Starlink internet plan, offering unlimited data at download speeds capped at 100 Mbps. This competitively priced option targets users in underserved or rural regions where traditional broadband access is limited or unavailable. While the speed is lower than many terrestrial services, the plan’s affordability and unlimited data could make it a practical alternative for households with moderate internet needs.

The new Residential 100Mbps plan is significantly cheaper than Starlink’s existing offerings. The standard Residential plan costs $120 monthly and provides prioritized service with download speeds between 150 and over 300 Mbps. The Residential Lite plan, priced at $80, is a deprioritized service offering 50 to 200 Mbps. Both of these higher-tier plans include unlimited data and upload speeds ranging from 15 to 35 Mbps. The new $40 plan essentially functions as a capped version of Residential Lite, maintaining unlimited data but with a fixed 100 Mbps download ceiling.

In the United States, average broadband bills hover around $70 per month, though costs can vary widely from $20 to $300. At $40, Starlink’s new plan is notably affordable, but its 100 Mbps speed falls below the national average of roughly 160 Mbps. This makes the plan best suited for smaller households or individuals whose online activities, such as browsing, video streaming, and telecommuting, do not require ultra-fast connections.

Availability of the $40 plan appears limited at launch, with reports suggesting it is being offered primarily in less congested service cells. Starlink, like mobile carriers, divides coverage into geographic cells. In areas with fewer subscribers, network congestion is reduced, making it easier for the company to roll out new, lower-cost plans. Early availability has been spotted in sparsely populated regions of states like Wyoming and Nevada.

If SpaceX expands availability and promotes the plan effectively, it could pose a serious challenge to terrestrial internet providers, especially in rural markets. For customers stuck with slow or unreliable broadband, or no service at all, this $40 unlimited plan represents a meaningful step toward closing the digital divide.

(Source: ZDNET)

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