Starlink doubling prices?

[JimStarkey]

The economics of Starlink are weird. There is no marginal cost to adding a user and there is no competition. So the only real pricing model is "what the market will bear." For residential and roaming, I think they have a good idea of what people will pay; raise the rates, they lose customers and the gross revenue goes down. Mega-yachts don't care in the least what they pay, they just want the bandwidth. Cruising couples care a lot, and everyone else is somewhere in the middle. I think Starlink is messing with their pricing to gather data on how to maximize their revenues. Or Musk has simply decided he hates mid-size cruising boats and their owners.

[windcastle1]

SL is the AT&T of the satellite internet market. They will set the price floor. New entrants will charge in the beginning 10/15% less than SL. The price won’t change much but there will different plans. Just look at cell phone plans. There will be yearly contracts with monthly pricing less than 30 day pricing. Discounts on equipment. Extended off shore range,. 10gb “ocean” coverage included with monthly service etc. Discount for 2nd dish on your account. Think friends and family. Data plans etc. You get the idea. Do not look for any great reductions in pricing. As others have stated, price low, build market share, raise prices. Also if you raise your prices just right where you get some users to cancel their service thereby freeing up bandwidth, the loss of revenue is made up by the people who will pay the new rate. It’s a win/win for the company. You free up bandwidth and you make more money with less users. This is just marketing 101 for any business/corporation.

[Rigdaddy]

Originally Posted by windcastle1

SL is the AT&T of the satellite internet market. They will set the price floor. New entrants will charge in the beginning 10/15% less than SL. The price won’t change much but there will different plans. Just look at cell phone plans. There will be yearly contracts with monthly pricing less than 30 day pricing. Discounts on equipment. Extended off shore range,. 10gb “ocean” coverage included with monthly service etc. Discount for 2nd dish on your account. Think friends and family. Data plans etc. You get the idea. Do not look for any great reductions in pricing. As others have stated, price low, build market share, raise prices. Also if you raise your prices just right where you get some users to cancel their service thereby freeing up bandwidth, the loss of revenue is made up by the people who will pay the new rate. It’s a win/win for the company. You free up bandwidth and you make more money with less users. This is just marketing 101 for any business/corporation.

This reflects what was going on in my mind when I got my notice about this impending increase from Starlink. After eight months of use, I've become spoiled. Not sure which way I'll go; surely I can make up my mind by August.

[Robertkwfl]

As others have mentioned, just go with the $250 mobile priority plan. It has everything the Mobile Global plan offers plus your first 50GB each month are priority.

Starlink appears to be phasing out the Mobile Global plan—it’s no longer available to new subscribers. At $400/month for existing subscribers, I can’t see any reason to choose it over the Mobile Priority plan.

[MSgt]

Originally Posted by geoleo

after all---- Teslas are in a sales slump and his gigantic raise there was turned down by courts---------

Actually was a bonus for meeting milestones/goals set by the board of Tesla, and that judge overreached by involving self in a private company which should not be. Just another dem attack in his who they loved until her bought twitter.

[Statistical]

Originally Posted by Robertkwfl

As others have mentioned, just go with the $250 mobile priority plan. It has everything the Mobile Global plan offers plus your first 50GB each month are priority.

Starlink appears to be phasing out the Mobile Global plan—it’s no longer available to new subscribers. At $400/month for existing subscribers, I can’t see any reason to choose it over the Mobile Priority plan.

It is weird they didn't just move those customers to Mobile Priority. Who would pay $400 when you can pay $250.

That makes me fear the second shoe to drop is somehow crippling Mobile Priority.

It is also kinda dumb they don't make a Mobile Priority 0 GB plan for say $200 oh yeah that is old Global Plan.

[Mkhslr541]

Originally Posted by S/V Illusion

I read recently that 40% of all money throughout the history of the US was printed in the last 3.5 years. But “corporate greed” has a nice ring to it.

[s/v Jedi]

Please cancel your service! Buy a Pactor modem!

[TPG]

Most boaters are using the mobile regional plan, and I don't think the prices are changing for that.

At least not yet.....

[wholybee]

Originally Posted by JimStarkey

The economics of Starlink are weird. There is no marginal cost to adding a user and there is no competition. So the only real pricing model is "what the market will bear." For residential and roaming, I think they have a good idea of what people will pay; raise the rates, they lose customers and the gross revenue goes down. Mega-yachts don't care in the least what they pay, they just want the bandwidth. Cruising couples care a lot, and everyone else is somewhere in the middle. I think Starlink is messing with their pricing to gather data on how to maximize their revenues. Or Musk has simply decided he hates mid-size cruising boats and their owners.

Some facts about Starlink. There is a maximum number of users they can support. Period, whatever that number is, they can't exceed it. There is a "marginal cost" because to grow the maximum number of users, they need to launch more Satellites.
But, not only that, the LEO Satellites have a short life before they deorbit burn up in the atmosphere. So, as Starlink both needs to launch Satellites to add users, and to replace Satellites that are end of life, the needs and costs of launches continues to rise.
The pricing Starlink launched the service with ($99, and then $129) could not work. The numbers didn't add up for them to ever get out of the red. There has always been a need to increase the revenue, beyond just adding users at $129 each.

[s/v Jedi]

Originally Posted by wholybee

Some facts about Starlink. There is a maximum number of users they can support. Period, whatever that number is, they can't exceed it. There is a "marginal cost" because to grow the maximum number of users, they need to launch more Satellites.
But, not only that, the LEO Satellites have a short life before they deorbit burn up in the atmosphere. So, as Starlink both needs to launch Satellites to add users, and to replace Satellites that are end of life, the needs and costs of launches continues to rise.
The pricing Starlink launched the service with ($99, and then $129) could not work. The numbers didn't add up for them to ever get out of the red. There has always been a need to increase the revenue, beyond just adding users at $129 each.

Correct. Also, the main investor financing all this is Elon Musk himself. You can’t buy shares of Starlink nor SpaceX as they are both (his) private companies. Only some who get invited are allowed to buy shares.

[CaptTom]

Originally Posted by wholybee

...There is a maximum number of users they can support...

Has anyone done the math on this? I wonder what the actual cost to provide the service really is. Is the current constellation making money, or losing? Just a point of curiosity, I always assumed it would take a while before this new market settled down and a workable pricing model was found.

[billyehh]

Yes, weather updates are important. I get mine via single side band or in a pinch by Sat Phone. A heck of a lot cheaper. In the 90's I was cruising for 10 days before I knew the first Gulf War was happening. And guess what? I'm still here!!!

[donradcliffe]

Originally Posted by s/v Jedi

Please cancel your service! Buy a Pactor modem!

You must be easy to please if you are happy waiting 20 minutes to get a bandwidth of 2400 baud

[donradcliffe]

Originally Posted by billyehh

Yes, weather updates are important. I get mine via single side band or in a pinch by Sat Phone. A heck of a lot cheaper. In the 90's I was cruising for 10 days before I knew the first Gulf War was happening. And guess what? I'm still here!!!

Last summer I burned up $4,000 on one trip getting weather updates on the Satphone. Modern phones and computers have huge hidden overheads. I told the boat owner he would have saved a hell of a lot of money with even the High Speed SL.