Starlink imposes $100 “congestion charge” on new users in parts of US

New Starlink customers have to pay a $100 “congestion charge” in areas where the satellite broadband network has limited capacity.

“In areas with network congestion, there is an additional one-time charge to purchase Starlink Residential services,” a Starlink FAQ says. “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.”

The charge is unwelcome for anyone wanting Starlink service in a congested area, but it could help prevent the capacity crunch from getting worse by making people think twice about signing up. The SpaceX-owned Internet service provider also seems to anticipate that people who sign up for service in congested areas may change their minds after trying it out for a few weeks.

“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 said.

There is some corresponding good news for people in areas with more Starlink capacity. Starlink “regional savings,” introduced a few months ago, provides a $100 service credit in parts of the US “where Starlink has abundant network availability.” The credit is $200 in parts of Canada with abundant network availability.

Starlink speeds

The congestion charge was reported by PCMag on September 13, after being noticed by users of the Starlink subreddit. “The added fee appears to pop up in numerous states, particularly in the south and eastern US, such as Texas, Florida, Kansas, Ohio and Virginia, among others, which have slower Starlink speeds due to the limited network capacity,” PCMag noted.

Speed test data showed in 2022 that Starlink speeds dropped significantly as more people signed up for the service, a fact cited by the Federal Communications Commission when it rejected $886 million worth of broadband deployment grants for the company.

This isn’t the first time Starlink has varied pricing based on regional congestion. In February 2023, Starlink decided that people in limited-capacity areas would pay $120 a month, and people in excess-capacity areas would pay $90 a month.

Despite the new $100 charge, this isn’t necessarily a bad time to order Starlink service. The ISP is currently offering the standard dish for $299 instead of the usual $499. People in excess-capacity areas of the US also get the $100 regional savings credit and a $90 monthly service rate.