The Starlink satellite internet service has just raised prices across the board, and SpaceX is blaming inflation. Recently, Tesla significantly increased the price of all of its electric cars for the second time in one month, with some of its models now costing up to $10,000 more. The company cited the Russia-Ukraine war as the reason for the price hike.
Mobility and transportation companies like Uber, Lyft, and others have all raised prices. They are directly impacted by the historically high gas prices, but inflation is also affecting normal households as well. The cost of rent, food, electricity, and gas is at an all-time high. As the cost of living and raw materials used in supply chains increase, technology companies are also affected.
Related: What Is Starlink Premium, And How Much Does It Cost?
Starlink has raised prices on its website. While the increase was linked to inflation, according to Engadget, Starlink has extra operational costs compared to other internet service providers since it uses satellites to deploy broadband from space. The Starlink kit, dish, and antenna now sell at $599 for new users. The monthly service price has also been increased by $11 and now costs $110 per month, almost $50 higher than the average AT&T fiber plan. The new monthly price is already live for new customers, with existing customers expected to see their price increase on their next billing date. Users can cancel their Starlink subscription within the first year and receive a $200 refund. They can also get a full refund if their equipment was delivered in the past 30 days.
SpaceX Affected By Inflation
The U.S. has been dealing with an inflation wave since the COVID-19 pandemic, and with the Russia-Ukraine war having destabilized global markets, prices have spiked across the board. Companies have had to increase their prices just to keep up. In the case of SpaceX, the costs are much higher compared to other internet providers that use fiber or cable. SpaceX has rockets to fuel and launch, and satellites to build and maintain, apart from a workforce that needs to be equalized against the cost of living.
SpaceX has also raised prices for its rocket business, CNBC reports. SpaceX Vice President of Commercial Sales Tom Ochinero said that the price increase was linked to the “cost of everything,” while highlighting the price of materials like helium and gas, and workforces. The cost of a Falcon 9 rocket launch has gone up by $5 million and now costs $62 million. The Falcon Heavy launch now costs $97 million, up from $90 million earlier. While SpaceX says future mission costs might continue to increase, hopefully, Starlink subscribers won’t be affected.