SpaceX's Starlinkis offering new residential customers of its satellite internet service its $349 hardware kit for free. But it's not free for everyone, and there are some caveats. In a post on X, the company said, "$0 for the Standard Kit with 12-month residential service plan commitment, now available in select markets." A link allows potential customers to check availability in their area and determine their eligibility for the offer. Another post read, "Terms apply. Read the FAQson starlink.com to learn more."
In addition to the 12-month satellite internet service requirement (starting after a 30-day trial), which can result in a $349 charge if it's not met, there's an additional $100 charge for new service in areas with high demand. The month-long satellite internet service charge varies by area. In some places, it's $80, and in others, it's $120 monthly or higher.
According to Starlink, changing addresses, failing to pay bills on time, trying to transfer to another user, or keeping the kit after canceling will result in a change fee. Countries included in the deal include Austria, Croatia, the Czech Republic, Germany, Greece, Ireland, Italy, the Netherlands, Norway, Poland, Spain and Switzerland. Countries including the US, UK, Canada, Australia and New Zealand have partial availability. Starlink is growing its customer baserapidly, but in CNET's testing, the internet service is costly forwhat it provides. Still, for some in remote or rural areas, it's one of the only options for high-speed internet.
Customer: 'I love it and I hate it'
One new customer who signed up a little over a month ago says the offer is frustrating because he paid for the equipment, but he's not even sure if he would have qualified for the offer. He also has a vested interest in seeing whether it sparks customer growth. Andrew Chanin is the co-founder and CEO of ProcureAM, the company behind the Procure Space ETF, a NASDAQ-traded fund. Chanin follows SpaceXclosely, citing communications as one of the big revenue drivers for space companies.
Chanin also has the Starlink home kit, which he purchased as a backup and for outdoor applications. "I was not in love with the reliability of my existing provider. I needed it as a backup to get extra bandwidth as needed and to have connected devices outside the home," he said. So far Chanin said he's been satisfied with the speed and reliability of Starlink. He missed out on the $349 offer, however, by just over a month. "I love it and I hate it," he joked.
Locating local internet providers
The CEO said Starlink follows the playbook of internet providers and telecom companies that subsidize the price of smartphones or internet routers and models to get people into service contracts. "It's a great way to lock in demand and recurring revenue," Chanin said. "It's a good way to get people to give it a shot and get more devices into more homes across the country."
Word of mouth, according to Chanin, can help spread information about Starlink to potential customers. Removing the initial hardware cost also eliminates a major barrier for some. "It's not necessarily a playbook they've invented, but one we've seen companies deploy with great success," he said.
