Starlink’s controversial dynamic pricing seems to have expanded from the Midwest to across the US, leading to a 10% to 20% price hike for affected subscribers on Residential plans.
As PCMag reports, on Saturday morning, numerous users on social media reported receiving an email from SpaceX about raising their rates, citing the need to manage supply and demand for the satellite internet service. “As more people in your area use Starlink, less network capacity is available and service pricing may change from time to time,” the company wrote.
“ANOTHER price increase! Just went up to $130 in June, and now it’s going to $143 a month!!” wrote one Facebook user based in Texas. As one user wrote to Musk on X: “wtf is this price increase bro? I’m getting rid of Starlink as soon as I have another option.”
However, the price hikes can be sizable. With the 20% increase, the Residential Max plan goes from $130 per month to $156 per month, which amounts to an extra $312 per year. Unsurprisingly, customer reaction has been harsh. “F#@& u and the price increases,” wrote one user on Reddit. “Tired of this price gouging.”
Others wrote that they plan to cancel their Starlink subscription and sign up with another internet provider. “Mine is going up to $143. Thankfully they are running fiber lines so hopefully we’ll be good to leave soon,” wrote one user.
Some customers are also directing their anger toward SpaceX CEO Elon Musk, currently estimated to be the world’s richest person. “Old Elon must be going broke, and he’s trying to get all (the money) back from his long-term customers!” wrote one user on Facebook.
Users based in Virginia, Louisiana, North Carolina, Washington, and Alaska have reported receiving the email about the price hike, suggesting the dynamic/surge pricing has gone nationwide. Starlink.com has also started to display the 20% rate hike for locations such as Portland, OR, Spokane, WA, Murphy, NC, El Dorado, AR, and Lafayette, LA. Some other areas, including Toronto, Canada, show a 10% increase.
Starlink first introduced the pricing scheme for Residential plans last week, but only for certain locations in Kansas, Missouri, and Nebraska. The rate changes can swing both ways: Some users were pleasantly surprised to see a 10% to 20% decrease, while others saw increases. For the unlucky users, the new policy amounted to a second rate hike within a single year, after Starlink announced a $5 to $10 price increase in May.
The other glaring issue is that SpaceX told affected users in Kansas and Missouri: “We will be reviewing prices on a regular basis, roughly quarterly, and you may see more frequent changes than we’ve made historically or compared to other providers.”
The uncertainty has led some users in remote and rural areas to fear that Starlink could raise prices again when they have no high-speed alternatives. Others slammed SpaceX for allegedly holding users hostage, and questioned why the company couldn’t simply slow internet speeds or use a waitlist to manage the system’s capacity.
SpaceX didn’t immediately respond to a request for comment. But the company’s latest email announcing the “service price adjustments” doesn’t mention reviewing prices on a quarterly basis, using only the vaguer “from time to time” language. A support document also says: “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.”
In SpaceX’s earlier email to users in Kansas and Missouri, it further noted: “These won’t just be [price] increases: as we expand capacity, service pricing in your area may be lowered.”
In some parts of the US, the company has also been offering a huge 30% discount, and even 50%, on the Residential plans for new customers. Locations include Boston, San Francisco, and New York City, areas where Starlink likely has excess network capacity. SpaceX has also been emailing eligible users, saying “Pricing applies for as long as your subscription remains active.”
The discount push could help Starlink attract new customers and even compete with traditional internet service providers. But pricing for satellite internet service has also become inconsistent across the country, making it entirely dependent on the user’s location. It’s also threatening to alienate existing subscribers hit with rate hikes. Three broadband experts also told PCMag they’ve never heard of an ISP implementing dynamic pricing on a regular basis.
One Reddit user also told PCMag: “They are taking advantage of people in rural areas because they know we don’t have any other options. I have been using Starlink since the beginning of 2024.” That user plans on canceling their Starlink subscription, saying: “I’m just not going to have internet. Can’t afford it anymore. Not at $156 per month.”
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