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Starlink Raises Prices: Elon Musk’s Company Blames Inflation

Starlink is now raising prices for its services and products, including the Starlink Kit. Although the company is quite new as an internet provider, Elon Musk’s SpaceX’s Starlink is reportedly blaming inflation as the reason for the company to raise its prices for satellite internet services.

SpaceX is Raising Its Starlink Services Prices Due to Inflation

According to the story by Engadget, with the prices of a lot of things rising as of writing, “that’s the rub with inflation.” Prices of different commodities such as food and gas have been soaring due to inflation.

Per the claims of SpaceX, inflation is the reason why the company is deciding to raise the prices for Starlink services. Starlink is a satellite internet provider that aims to cover even parts of the world that are unreachable by cell towers.

Starlink Kit Prices to Increase from $499 to $549

An email from SpaceX was forwarded to Engadget saying that the Starlink kit is raising its prices to $549 from its original $499. This, as SpaceX noted, is due to the “excessive levels of inflation,” implying that the company is also affected by this.

The Starlink kit is not the only thing that is increasing its price. The Starlink monthly service is likewise undergoing a price increase.

The monthly service price for Starlink internet will increase to $110 from its original price of $99.

Buyers can Get $200 Refund While Full Refund Issued for Those Not Surpassing 30 Days of Receiving the Kit

The new price increase will officially be implemeted on April 22. Customers have been sent an email reminding them that they are free to cancel and still potentially get a partial refund amounting to $200.

In order to get a full refund for the Starlink equipment, however, buyers can only claim the full amount if they get the refund within the last 30 days. 

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Starlink Currently has 250,000 Subscribers

As of press time, however, the company has not yet given a response regarding Engadget’s report as noted in their article. According to PCMag, Elon Musk tweeted about inflation and how it has brought pressure in logistics as well as raw materials.

 

250,000 subscribers are currently being served around the whole world by Starlink, per SpaceNews, as the company plans to move into other markets just like aviation. In addition, the vice president of Starlink commercial sales, Jonathan Hofeller, has noted that they are close to manufacturing eight satellites per day.

When asked regarding how many subscribers are needed in order for the company to become profitable, Hofeller did not give a response. He did, however, note that the profitability of the second gen satellites would help improve the profitability of the system.

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Written by Urian B.

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