Is SpaceX's Starlink A Real Threat To Traditional Broadband Providers?
SpaceX's Starlink internet program may be poised to revolutionize rural internet connections in the not-so-distant future, but an analyst suggests that it won't be an immediate threat to today's current broadband providers. To be clear, Starlink isn't presently a threat to any internet provider, since it's still in beta testing. However, the company is already accepting pre-orders from customers in the United States, Canada, and the UK, meaning the program's rollout could be imminent.
Starlink is the satellite internet program founded by Tesla CEO Elon Musk that aims to use satellites in low-Earth orbit to deliver reliable internet speeds around the world. Starlink has more than 1,000 satellites in active orbit, a number that has even prompted NASA to enter a joint agreement with the company to establish clear lines of communication to avoid each other's spacecraft. While not to the level yet, SpaceX has announced plans of being able to provide up to 10GBps download speeds in the future.
MoffettNathanson analyst Craig Moffett, makes the assertion that Starlink will seize on opportunities in rural areas and parts of the world where broadband availability is scarce, according to Light Reading. Due to this, Moffett suggests that Starlink won't be focusing on already-connected communities where traditional broadband providers have already set up roots. As Light Reading points out, the analysis mirrors Musk's personal assessment, since the tech billionaire admitted last year that Starlink doesn't pose a major threat to established broadband internet providers.
It's most likely a safe bet to dismiss the possibility of Starlink being a threat to traditional broadband providers in its current form. Right now, there's far more room for competition in areas where customers have slow internet speeds or poor connections. If Starlink can enter those markets and offer greatly improved internet, it could be an ideal way for the company to experience some early success. However, over time, it is possible that Starlink could eventually become a legitimate competitor to Comcast and other major internet service providers. If Starlink's claims of being able to reach 10GBps download speeds come to fruition - or even close to it - Comcast and others may have a serious challenger on their hands.
An important key will be how much Starlink charges for its hypothetically ultra-fast internet. Currently, a Starlink plan costs $99 per month, making it similar in price to the internet plans already offered by traditional broadband providers. If Starlink can further reduce the price while also delivering incredibly fast internet speeds, it could become a game-changer for all those involved, For now, though, SpaceX will continue to work on its beta testing and preparing to take on the rural internet landscape.
Source: Light Reading