Is Starlink’s new affordable broadband plan a gamechanger?

SpaceX’s Starlink is dipping its toes into the affordable broadband market, with the launch of its “Residential Lite” service in 15 U.S. states. While it’s cheaper than Starlink’s standard residential plan, the move is hardly a gamechanger for rural broadband connectivity. First things first, it’s not quite a new offering, as Starlink first rolled out the plan across some markets in Europe, Latin America, Africa and Oceania. But only now is Residential Lite entering the U.S. scene. Residential Lite costs $80 per month (compared to the $120/month residential plan), with speeds ranging from 50 Mbps to 100 Mbps. So, it’s not as fast as the standard plan which offers 150-250 Mbps speeds. Notably, Starlink said Residential Lite service will be “deprioritized” during peak hours. This means customers on the lower-cost plan may experience slower service compared to Residential subscribers when the Starlink network has a lot of users online. Considering Starlink’s capacity constraints (as it has an ever-expanding waitlist), that’s not surprising to hear. Though Residential Lite is marketed as a more affordable Starlink option, “no matter how you look at it $80 is still a high price,” said Recon Analytics principal Roger Entner.