Correnti Calls Starlink's 2X Price Hike Reckless and Unjustified
Starlink 2X Price Increase
I am deeply concerned about Starlink's decision to double its prices, a move I consider reckless and damaging to the industry. This sudden increase ignores the financial realities faced by many users and threatens to make essential connectivity unaffordable. It is a bold step that could alienate customers and stifle the very innovation the company claims to champion.
Starlink price rise 'reckless', says Correnti
- khurs
There will be many price increases seeing as:
-SpaceX raised $75bn in the IPO which will only last so long for a loss making high capital requirements company.
-Then $25bn via bonds which have an annual interest rate repayment of $1.46 billion + repayment of the $25b (depending on bond length in years 2031,33,36,46 and 2056)
-Morgan Stanley said: "In our model, we estimate SpaceX raising an average of $72bn annually between 2027 and 2030 and then an average of $95bn annually between 2031 and 2034."[0]
So huge amounts needed continuously.
[0]https://www.ft.com/content/09a62ed4-16af-433c-adb7-c877d1975...
- BoppreH
Note that this is for the "aviation plan" which already requires six-digits equipment.
- justapassenger
I’m pretty sure rest of starlink customers will get similar treatment in the future. Their potential customer base is limited and it’s only ISP that literately burns their backbone network every few years and has to replace to keep it running.
On top of that, their claims it’s profitable does some heavy lifting with how to account for the cost of launching rockets.
It’s extremely cool product and very useful for many customers. But sustainability of current pricing is very questionable.
- delichon
At the other end they recently doubled the cost of the Starlink Mini standby plan, from $60 to $120 per year.
- p-o
Hard to not look at the crazy valuation of SpaceX and not see a correlation. At some point, something's gotta give.
- jameskraus
It is an reckless business practice to not have the monthly price locked down, with strong contractual protections. Sounds like Correnti didn't negotiate well and are now finding out.
- theturtletalks
What’s even more concerning is that the current government changed their requirements for the rural broadband program so companies like StarLink can bid to bring internet to those remote areas instead of using wired or fiber connections. Not far-fetched that StarLink wins this contract and then squeezes those customers over time. ISPs will have little reason to expand in those underserved areas without government subsidies.
- w10-1
Note that the objection is as much to the abruptness as the scale of the price increase.
Large customers sinking millions into (here aviation) assets rightly expect that their vendors respect their market lifecycles.
Starlink's behavior creates a credibility gap that could drive such customers to the 2-3 upcoming competitors with poorer service and even higher costs, but perhaps more reliability as partners.
I'd see this as an opportunity.