Here’s the deal — The waitlist for SpaceX’s Starlink residential internet service in the contiguous United States has just been removed. Instead, this decision emphasizes the growing number of operational satellites in its domestic fleet. SpaceX already has almost 6,600 Starlink satellites operating. That’s a notable jump from the estimated 6,000 satellites just a few weeks ago at the end of November. This expansion is a direct response to the increasing demand for satellite internet services. It seeks to simplify the bottleneck which users experienced in previous years.
In November, SpaceX reinstated the waitlist for Starlink’s residential plan. They restricted their coverage to areas that average at least five subscriptions per square mile. This waitlist was recently expanded to cover all of Washington state and most of Florida. The recent decision to eliminate the waitlist is an even bolder plan from SpaceX’s playbook. That’s in an effort to amplify concerns and pressure the Federal Communications Commission (FCC) to ease regulations on radio emissions from Starlink satellites. Relaxing these regulations would allow SpaceX to eliminate service gaps and keep improving the speed its customers receive.
Starlink is still meeting with pushback over congestion. The company imposes a “demand surcharge” of up to $250 in certain neighborhoods. This congestion charge takes into account the lack of high user density at those locations and how they must disrupt internet speeds to nearby users.
Growth Challenges and Competitive Pressures
Wishlists were baselined at an average of ~5 subs/sq mile in the contiguous US. As Tim Farrar put it, service will get a lot worse in many places very soon. He attributed this drop in quality to how customer density affects the quality of service provided.
Beyond that, Starlink’s customer growth seemed to have stalled out last year and the company is trying out new tactics to jumpstart new subscriptions. We subsidize Starlink dishes, providing them for free to customers, with a one-year service commitment. Please note, this promotion is only offered in locations where we have capacity. This new effort is largely intended to woo American consumers away from entrenched satellite competitors Hughesnet and Viasat.
“The free terminal offering in particular may allow Starlink to compete more aggressively to steal customers from incumbent satellite internet providers,” noted Jonathan McDowell.
Starlink’s Position in the Satellite Internet Market
Starlink is largely an effort to strengthen its market position. By allowing growth inhibitors such as waitlists, the company provides a mundane boring opportunity. Industry analysts agree that subscriber growth has officially maxed out. In making these changes, it may once again fuel interest in a market that’s already long-mature, but highly profitable.
“Assuming US subscriber growth continued to stall or even plateau, removing growth barriers and offering free dishes where excess capacity is available gives Starlink new opportunities to jumpstart growth,” stated Caleb Henry.
SpaceX is continuing to rollout its satellite network while pivoting its strategies. Consequently, the future of Starlink is a key issue in the rapidly shifting landscape of satellite internet providers.
Author’s Opinion
SpaceX’s decision to eliminate the waitlist and offer free terminals is a clear strategy to boost Starlink’s customer base amid growing competition and regulatory hurdles. By leveraging its expanding satellite fleet and easing access, Starlink aims to solidify its position in the satellite internet market and drive consumer interest, even as the growth trajectory slows.
Featured image credit: Ars Technica
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