Starlink has implemented a one-time $100 “congestion charge” for new customers in areas where its satellite broadband network is experiencing limited capacity. This fee is designed to manage demand and prevent further strain on the network.
According to a Starlink FAQ, “In areas with network congestion, there is an additional one-time charge to purchase Starlink Residential services. This fee will only apply if you are purchasing or activating a new service plan. If you change your Service address or Service Plan at a later date, you may be charged the congestion fee.”
While this charge may be unwelcome for those seeking Starlink service in congested areas, it aims to mitigate the risk of worsening capacity issues by encouraging potential customers to reconsider signing up. Starlink, owned by SpaceX, also anticipates that some users may opt to cancel their service after a trial period.
“Our intention is to no longer charge this fee to new customers as soon as network capacity improves. If you’re not satisfied with Starlink and return it within the 30-day return window, the charge will be refunded,” the company stated.
On a positive note, Starlink offers a $100 service credit in regions with ample network capacity in the US, and a $200 credit in parts of Canada. These “regional savings” were introduced a few months ago to incentivize customers in areas with excess capacity.
The congestion charge was highlighted by PCMag on September 13, following reports from Starlink subreddit users. The fee appears in several states, particularly in the southern and eastern US, such as Texas, Florida, Kansas, Ohio, and Virginia, where Starlink speeds are slower due to limited network capacity.
In 2022, speed test data revealed a significant drop in Starlink speeds as more users joined the service. This was a factor in the Federal Communications Commission’s decision to reject $886 million in broadband deployment grants for the company.
This isn’t the first instance of Starlink adjusting pricing based on regional congestion. In February 2023, the company set monthly rates at $120 for limited-capacity areas and $90 for excess-capacity areas.
Despite the new $100 charge, it may still be an opportune time to order Starlink service. The ISP is currently offering the standard dish for $299, down from the usual $499. Additionally, customers in excess-capacity areas in the US benefit from the $100 regional savings credit and a $90 monthly service rate.