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Highlights
- 2024 and 2025 are set to host a significant clash between Amazon and Starlink over satellite internet services.
- Potentially major implications for rural connectivity.
- Amazon plans to launch a series of satellites to provide a more affordable alternative to SpaceX's Starlink service.
- Set to begin testing in late 2024. It aims for a public rollout in 2025.
Amazon seeks to undercut Starlink's pricing while promising high speeds, with offerings tailored to different user needs-from households to large businesses.
Amazon aims to disrupt the current market by producing satellite kits that cost under $400 to manufacture, allowing them to price these kits well below Starlink's $599.99.
This aggressive pricing strategy could attract a broad customer base early on. However, the monthly service fees remain undisclosed.
Currently, Starlink's service costs most users about $120 per month.
In terms of service speeds, Starlink currently offers average speeds of over 100 Mbps. Amazon, however, is setting ambitious targets for its service:
- Standard service: An 11" square antenna offering speeds up to 400 Mbps, suitable for most households.
- Pro service: This 11" by 30" antenna is designed for businesses or large households and can reach speeds of up to 1 Gbps.
- Portable option: A 7" square ultra-portable antenna providing speeds up to 100 Mbps, ideal for travelers.
These offerings suggest that Amazon's service could not only compete with but potentially exceed Starlink's current performance, especially with the pro version promising gigabit speeds.
My take: Will satellite options drive prices down?
The impending competition between Amazon and Starlink is a win-win for consumers, especially those in rural America who have long struggled with limited internet options.
The rivalry is expected to drive down prices and spur innovations that enhance service quality and accessibility.
As Amazon enters the fray, its potentially lower-priced service and promising speeds could pressure Starlink to innovate further and adjust its pricing structures.
As these tech giants vie for dominance, I am hopeful that consumers will benefit most. They stand to gain from improved connectivity and more choice in internet access as competition drives prices down.
Stay tuned to MoneySavingPro.com for ongoing updates on this development and insights into how it might affect your internet choices.
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