Starlink internet equated to price of smartphones
The price of Starlink’s service in Jamaica, the latest satellite internet provider approved by regulators, will cost consumers nearly $70,000 to set up, mainly due to the one-off cost of acquiring the dish hardware.
The monthly fees are also higher than rivals although the stated data speeds from Starlink are faster.
Starlink’s monthly fee is $8,450, while the price to purchase the dish is $60,500, according to information generated by Starlink’s website when a Jamaican address is typed in.
Starlink Services Jamaica Limited, a subsidiary of SpaceX, which is ultimately owned by billionaire investor Elon Musk, received approval for a telecoms licence to operate in Jamaica, last month.
Starlink offers internet access through a constellation of satellites that orbit the earth. The Jamaican Government said the introduction of Starlink means that even the most remote and underserved areas will have access to connectivity. Currently, around 2.16 million Jamaicans or three-quarters of the population have access to the Internet. Most, however, are connecting through mobile phones, with only 416,000 connected through fixed broadband services, telecoms regulator Office of Utilities Regulation said in its report for the period ending March 2022.
As to whether the price of the Starlink service might prove prohibitive and a disincentive for subscribers, the Internet Society Jamaica Chapter was opposed to that view.
“No, the price is not out of reach for a typical Jamaican,” said President Natalie Rose in response to Financial Gleaner queries. “The monthly subscription is reasonable when compared with internet plans from other telecommunication companies. The cost of the hardware is a one-off payment,” she added.
Still, Rose, who is also the department head for IT at the University of the Commonwealth Caribbean, said she would have preferred the cost of the dish to be split over several months. But, she added, Jamaicans are known to splurge on gadgets that they want.
“This is similar to persons who will pay over $100,000 for the latest model iPhone or Samsung phone,” said the Internet Society president. “Persons in the rural areas who think the internet is beneficial would make the effort to pay for satellite internet service.”
Lauren Dreyer, an engineer at SpaceX and the sole director listed for the Starlink Jamaica operation, did not respond to requests for comment.
Starlink promises to deliver the equipment within two weeks of sign-up.
Customers install their own hardware which looks like a portable rectangular dish that’s the size of a laptop.
“Customers in your region typically see download speeds of 50 to 200 Mbps,” says Starlink.
The variation in speed relates to interference which can come from trees or cloud cover, during regular usage.
Of Jamaica’s two largest internet providers, through wired fibre-optic connectivity, Flow offers 150 Mbps at $6,000 per month but is currently running a promotion for $5,000; while Digicel offers 100 Mbps at $6,000 and 200 Mbps at $11,000 per month.
Other notable internet providers that offer wireless service include ReadyNet, Neptune and Rock Mobile. Their prices were not quoted on their sites.
In its home market, the United States, Starlink quotes US$110 for the monthly fee and US$599 a month ($16,600) and for the hardware. That equates to around $16,000 and $90,000, respectively, in Jamaican currency.
In the US, subscribers can upgrade to ‘high performance’ hardware for US$2,500 but that option isn’t available for Jamaica. High-performance hardware is best for power users and enterprise applications. Additionally, it provides better weather resistance, three times better speeds in hot climates, and better snow-melting capability than standard hardware.