Elon Musk’s Taxpayer-Subsidized Starlink Yanks Cheaper $40 Plan Because Network Couldn’t Handle The Load

from the stop-subsidizing-terrible-billionaires dept

We’ve noted how Republicans are rewriting the 2021 infrastructure bill (they voted against) to ensure that billions of dollars in taxpayer-funded broadband grants wind up in the back pocket of Elon Musk and Jeff Bezos (and their low-Earth orbit (LEO) satellite broadband ventures, Starlink and Project Kuiper). This is billions of taxpayer dollars being paid to billionaires in exchange for doing nothing differently.

Republicans are framing this as something that’s going to save taxpayers money, but it’s a lie.

I’ve explained in detail why that’s a problem: LEO networks may be initially cheaper to deploy, but the networks lack the capacity to actually scale to meet demand. Data indicates they harm astronomy research and the ozone layer. Money directed toward Jeff Bezos and Elon Musk is also money directed away from higher-capacity, faster, higher-quality fiber and wireless alternatives, many of which are actually owned by the local communities they serve.

Starlink is also expensive.

At up to $120 a month for a “real” plan at next-generation speeds, plus hundreds of dollars in up front hardware fees, the service is too expensive for most of the Americans desperate to be connected. Apparently aware of the criticism that taxpayers were giving billions of dollars to a billionaire for a system many people can’t afford, Starlink briefly introduced a slower, $40 monthly tier.

Which disappeared almost as quickly as it was introduced, because the network couldn’t actually handle the influx of new subscribers:

“The 100Mbps plan was not widely available, as it seemed to pop up in a relatively small number of areas where Starlink likely had excess network capacity. Some customers speculate that new users and existing subscribers scrambled to take advantage of the bargain deal, which caused Starlink to reach capacity in the eligible areas. The plan stood out for its low price while capping download speeds to 100Mbps.”

Starlink also imposes massive “congestion fees” in areas where it lacks capacity. These fees can be upwards of $750 in some areas. So again, you can probably see why it’s a bad idea for Republicans to treat Starlink as a connectivity panacea while showering it with subsidies that could be going to better, more affordable, higher capacity options.

Ideally, if you’re going to throw billions of subsidies at U.S. broadband, your technology priority should be fiber (preferably open access, community owned to counter monopoly dominance), wireless (either fixed or 5G), and then LEO satellite to fill in the gaps. Instead, Republicans are putting Starlink at the front of the line, and Musk and friends are whining about and harassing states that balk at this dumb idea.

Back in June, researchers showed in detail that given the limited nature of satellite physics, the more people that use Starlink, the slower the network is going to get. What, exactly, do folks think is going to happen when the network sees a mass infusion of taxpayer subsidized advertisement and usage?

To be clear: Starlink is great if you have no other options and can afford it. But it shouldn’t be the top priority in a historic round of taxpayer subsidies. That’s just begging for trouble down the road. But Republicans are so excited to throw billions of new dollars at their white supremacist billionaire godbaby, they don’t really care about the actual real world impact at the other end of the line.

Filed Under: bead, congestion, elon musk, high speed internet, infrastructure bill, leo, low earth orbit, subsidies, telecom

Companies: spacex, starlink