A Rural ISP Takes a Dig at Starlink By Pointing To 'Hidden Costs'
A traditional ISP in Virginia that's been losing rural-area customers to Starlink is hitting back by pointing out the "hidden costs" of the satellite internet service
As Light Reading reports , the ISP Shentel has published an article warning local users that adopting SpaceX's Starlink can be more expensive than what's advertised online.
"Depending on your location and service needs, the actual cost of Starlink can be hundreds or even thousands of dollars higher than many consumers initially expect," Shentel wrote in the article , which was originally published July 29th.
Shentel concedes that Starlink "has made high-speed internet available in places that once had few or no broadband options" when SpaceX's satellite internet service ranks as one of our best ISPs. Still, Shentel's article also highlights some of the lesser-known factors that can add some extra costs for certain new sign-ups.
For example, Shentel warns about Starlink's infamous " demand surcharge ," which can add a special one-time fee for signing up for the Residential plan if you live in an area already full of subscribers. The demand surcharge can range from $100 to as much as $1,500, which can be found in parts of Alaska. That said, it appears Starlink has been adding more network capacity and removing the extra fee in more parts of the US, including in Virginia.
The same article also notes Starlink had briefly been imposing a $10-per-month fee to rent the satellite dish hardware, although SpaceX quietly rescinded the charge last month. Shentel also takes a dig at SpaceX's recent controversial changes, including price increases for the various plans, warning "your monthly bill may change."
In addition, we've spotted the company posting a "Shentel vs Starlink page," advertising prices for as low as $30 and $40 per month for the ISP's 200Mbps plan.
Shentel, which supplies both cable and fiber internet, didn't immediately respond to a request for comment about why it published the pages. But back in May, the company reported losing some of its cable internet customers to Starlink, which had been offering new promotions.
Shentel's article seems to respond by claiming "Cable Internet Often Offers More Predictable Pricing." "Many cable providers such as Shentel include professional installation, avoid demand-based surcharges, and offer straightforward monthly pricing without requiring specialized satellite equipment. Cable also typically delivers lower latency, making it a better fit for video conferencing, online gaming, and households with multiple connected devices," the company added.
The Starlink competition has also prompted Shentel to respond with better pricing. In an earnings call on July 29th, Shentel told investors "the impact from satellite competition declined from the first quarter, and remained a relatively small contributor to churn (subscribers dropping the service)." That's because in Q1 the company introduced lower pricing for certain rural areas to help prevent losing customers in Starlink.
"With our service, you can get a double the speed for a lower price than satellite offers currently," said CEO Edward McKay, who also noted Starlink has been pulling back its promotions.
PCMag and Yahoo may earn commission from links in this article.
