SpaceX new Starlink The cuts are bad news for ISPs serving rural users in Virginia.
according to Broadband breakfastISP Shentel saw a slight increase in “crash”, the business term for customer loss, which it attributed to Starlink’s promotional activity. This mainly affected the “existing markets” where Shentel served users. cable more internet than newer gigabit fiber offerings.
(Credit: Shentel)
“In our existing markets, we saw a bit of a loss on Starlink with some of the promotional offers they had in the first quarter,” Shentel CEO Edward McKay said on Friday. earnings call.
He noted that SpaceX last month reduced Residential Starlink costs $15 per month for the first four months of subscription. In March, he offered a similar promotion shaved 11 dollars, but for a period of six months.
“I think the biggest factor was (SpaceX) offering free equipment,” McKay added, referring to how the company got started. is for rent last year Starlink made its meals free to new subscribers. A Starlink Residential subscription cost $120 a month 300 dollars for hardware. SpaceX has since cut costs in the US, but only where Starlink is addition network capacity.
“We’ll see how long it lasts,” said Shentel’s CEO. “They may offer these promotions in preparation for a potential IPO later this year.”
After April’s launch, Starlink.com isn’t showing a new discount for May, at least so far. Again, aggressive promotions prompted Shentel to respond. “In these markets, we implemented speed increases at the end of the first quarter, providing customers with higher speeds for the same price to better differentiate our services from satellite offerings,” McKay said.
The company offers a 200 Mbps plan for $50 per month ($40 for new customers). increase From 100 Mbps. In addition, Shentel offers a prepaid Internet “Flex” service with 50 Mbps for $45 per month.
But you can find some Shentel subscribers on Facebook changed Starlink reporting faster internet speed. SpaceX’s satellite internet can range from 100Mbps to 400Mbps depending on the Residential plan and capacity. “I’ve never had a problem with Shentel, but download/upload speeds are faster with Starlink.” he wrote a user.
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Last month’s discount also reduced the starting price for Starlink’s Home 100Mbps plan to $35 per month, the Home 200Mbps plan to $65 per month and the Residential Max plan to $105 per month.
There is Starlink already leading to significant subscriber losses for rival satellite internet providers Viasat and Hughesnet. But there are some analysts he emphasized Starlink could pose a competitive threat to traditional ISPs, even in urban areas, thanks to potential user dissatisfaction with discounts and other broadband offers.
On Thursday, even Federal Communications Commission Chairman Brendan Carr noted “Satellite is a real and growing competitor in the broadband market,” which can reduce consumer spending. SpaceX is also set to upgrade Starlink with gigabit speeds and more capacity.
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Michael Kahn
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Experience
I have been a journalist for more than 15 years. I started as a school and city reporter in Kansas City and joined PCMag in 2017, covering satellite internet services, cybersecurity, computer hardware, and more. I currently live in San Francisco, but previously spent over five years in China covering the country’s technology sector.
Since 2020, I’ve covered the launch and explosive growth of SpaceX’s Starlink satellite internet service, writing more than 600 stories on availability and feature launches, as well as regulatory battles over expanding satellite constellations, battles with rival providers like AST SpaceMobile and Amazon, and efforts to expand into mobile satellite-based service. I scoured FCC filings for the latest news and traveled to remote corners of California to test Starlink’s cell service.
I also cover cyber threats, from ransomware gangs to the emergence of AI-based malware. in 2024 and 2025 The FTC forced Avast to pay consumers $16.5 million for secretly collecting and selling their personal information to third-party clients investigation with the motherboard.
I also cover the PC graphics card market. Disadvantages during the pandemic he took me to the camp In front of Best Buy to get the RTX 3000. Now I’m watching how AI-based memory shortages affect the entire consumer electronics market. I’m always eager to learn more, so please leave feedback in the comments and send me tips.
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