In a bold move that significantly lowers the barrier to entry for satellite internet, SpaceX's Starlink has officially introduced its most affordable service plan to date. The new "Residential" plan starts at just $40 per month, a dramatic price cut that positions the company to aggressively compete for both customers and critical federal funding.
This announcement comes on the heels of a similar price reduction for Starlink's hardware, making the overall cost of joining its satellite network more accessible than ever before.
What You Get for $40 a Month
For the new low monthly fee, subscribers to the basic Residential plan can expect download speeds of up to 100 Mbps. Starlink markets this tier as suitable for a household of two to three people engaged in typical online activities like web browsing, email, and standard or high-definition (HD) video streaming.
A key feature that sets this plan apart from many terrestrial competitors is the inclusion of unlimited data, with no hard data caps. The plan also includes unlimited uploads, making it a compelling option for those who need a reliable connection for video calls, cloud backups, or sharing large files.
A Strategic Price Cut in a Competitive Landscape
This new $40 plan represents a substantial shift in Starlink's pricing structure. The next available tier, "Residential Lite," costs $80 per month for speeds up to 250 Mbps. While a separate $60/month promotion exists, it is exclusively for former customers as a retention incentive.
The rollout of this budget-friendly plan appears strategically targeted. It is predominantly available in regions where SpaceX is poised to compete for a share of the federal government's massive $42.5 billion Broadband Equity, Access, and Deployment (BEAD) program. This program aims to bridge the digital divide by funding internet expansion in underserved rural areas.
Earlier this year, a pivotal rule change by the Biden administration allowed satellite internet providers to participate in BEAD funding auctions. This decision, influenced in part by industry lobbying, meant that Starlink could now compete directly with traditional internet service providers (ISPs) like AT&T, Spectrum, and Comcast for these federal dollars.
This did not sit well with some fiber-based ISPs, who argue that laying physical fiber optic cable involves far greater infrastructure costs. Starlink's model, by comparison, can often meet the program's requirements by providing a user with a free standard dish and the new 100 Mbps service—exactly what the $40 plan offers.
For existing Starlink customers wondering if they can benefit from this new price point, the answer is a conditional yes. According to the company, "Existing Residential customers may switch to the Residential 100 Mbps plan if it appears as an available option in their account." You can check your eligibility and manage your plan directly through your account page.
A Winning Formula for Federal Funding?
While the BEAD program covers infrastructure costs, it does not pay for users' monthly subscription fees. However, some states do consider ongoing plan affordability as a criterion when awarding funds. By slashing its monthly fee to $40, Starlink's offering becomes competitively priced with many subsidized fiber plans, dramatically increasing its appeal in state-level BEAD auctions.
This strategic pricing move not only makes Starlink more accessible to budget-conscious households but also strengthens its hand in securing a larger portion of the federal funding pie. For millions of Americans in rural "dead zones," this competition could finally translate to a fast, reliable, and affordable internet connection they've been waiting for.
Thinking of making the switch? Before you order, check your address for service availability and see a full breakdown of the plan details on the official Starlink website.
If you're ready to get connected, you can find the official Starlink kits and accessories at major retailers. Check current pricing and availability for the Standard Starlink Kit on Amazon here.
