Starlink, the satellite internet service provided by SpaceX, has introduced a $100 congestion charge for new users in areas with high network traffic. While this sounds like it won’t be refunded, there is a plan to give this back to customers.
This fee is a one-time charge applied when purchasing or activating a new service plan. Starlink stated that this charge could also apply when changing service addresses or plans in the future. The company stated that the fee is supposed to address network congestion issues and may be removed as network capacity improves. However, Starlink plans to offer $100 refunds to customers in areas with excess network capacity. This is supposed to balance the network load and get users to use less congested areas. This is a service made for those in remote areas who likely can’t just pick and move to another non-congested area, so essentially, it’s a fee based on where you live.
Starlink has explored other network management strategies, like usage caps, and this $100 fee seems like another way to help manage this issue. The service uses low-Earth orbit satellite technology. This is pretty limited, and because it’s mostly for those who can’t be reached through 5G or fiber, it will likely get worse unless Starlink can fix congestion issues. Starlink will likely continue expanding and adding subscribers thanks to its partnerships and initiatives, like with United. In the end, fiber is still the best option for those looking for internet, but those who cannot get it from traditional means must deal with this.
The price for Starlink sits at $120 a month (not including hardware costs) for residential customers with no contract and unlimited data. However, for those who are on the move, there are also plans like Roam, Mobile Priority, and Boats that offer coverage in a mobile capacity. Those costs vary, but all come with a 50GP cap. Buyers can upgrade it to $165 a month for an unlimited plan (Roam plan only) or $1,000 for a 1 TB cap (Mobile Priority and Boats plans). There was no mention of whether a charge would be applied when someone uses a roaming plan but goes into a coverage area that is congested. Those plans are still better than nothing for those who are not reachable by traditional means or live in an area with bad internet.
Source: Techdirt