Starlink rural customers are seeing price increases

I’m borrowing the Benton Institute for Broadband & Society’s summary of the Washington Post article

When Julie Slama and her husband moved to a home outside Dunbar, Nebraska, in April 2022, they were happy customers of Elon Musk’s Starlink. The satellite-based internet service from Musk’s rocket-maker, SpaceX, was the only practical option for them in their rural community, and their $90 monthly rate has felt reasonable in the years since. SpaceX is set to list on the stock market this week at a valuation of more than $1 trillion, and Slama is now feeling the squeeze. She and her husband, parents of three who run a law firm from their home, face a 44 percent jump in their internet bill, an annual increase of nearly $500. Starlink told some U.S. customers in May that it was raising prices and increased the cost of most plans for a service that counts millions of users across the country. “I can complain about Starlink raising their prices, but it’s the only real option we have,” said Slama, a Republican and former Nebraska state senator. “Once they have rural customers on their service with no meaningful alternatives, they’re free to raise prices at will.” “When you have a captured consumer you are able to raise the prices,” said Drew Garner, director of policy engagement at the nonpartisan Benton Institute for Broadband & Society. “Given that broadband is an essential service and that the consumer has to buy it you’re able to … squeeze them often.”

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About Ann Treacy

Librarian who follows rural broadband in MN and good uses of new technology (blandinonbroadband.org), hosts a radio show on MN music (mostlyminnesota.com), supports people experiencing homelessness in Minnesota (elimstrongtowershelters.org) and helps with social justice issues through Women’s March MN.

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