Starlink Satellite Internet Surpasses 4 Million Subscribers, What’s Next for the Satellite Internet Market

By Victor Xu | 4Q 2024 | IN-7559

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Starlink satellite Internet service achieved a remarkable milestone by surpassing 4 million global subscribers in September 2024. What stands out about this milestone is the rapid pace at which Starlink has attracted new customers. The service reached 1 million subscribers in December 2022, then doubled to 2 million by September 2023. Just 2 months after that, it hit 3 million in May 2024, and now, only a few months later, Starlink has reached 4 million customers. This impressive growth is a testament to the increasing popularity and demand of satellite Internet. The service's rapid growth is also expected to have significant financial implications for SpaceX. According to projections, Starlink is anticipated to generate US$6.6 billion in revenue in 2024, a substantial increase from US$1.4 billion just 2 years prior.

The Mechanics of Starlink's Space-Based Internet

Starlink satellite Internet operates using a vast network of satellites in Low Earth Orbit (LEO), approximately 550 Kilometers (km) above the Earth's surface. Users connect to these satellites via the Starlink satellite dish, which communicates with the nearest satellite to send and receive data. The satellites relay information to ground stations connected to the Internet backbone, and back to users, creating a high-speed, low-latency connection. This system allows Starlink to provide global coverage, particularly benefiting remote areas, with speeds ranging from 50 Megabits per Second (Mbps) to 200 Mbps and latency around 20 Milliseconds (ms) to 40 ms.

The rapid growth of Starlink's user base underscores the increasing demand for satellite Internet services, especially in unserved and underserved regions. Satellite Internet has the potential to transform the lives of people in these areas by providing access to opportunities that were once out of reach, ultimately contributing to socioeconomic development and bridging the digital divide:

• Access to Education: Provides students in remote areas with online learning opportunities, bridging the gap between rural and urban education.
• Healthcare Improvement: Enables telemedicine, allowing remote consultations and better healthcare access where medical facilities are limited.
• Economic Empowerment: Connects local businesses to e-commerce, global markets, and digital payment systems, boosting economic growth and job opportunities.
• Emergency Communication: Provides reliable communication during disasters when traditional networks fail, aiding in effective relief efforts. In early October 2024, the Federal Communications Commission (FCC) has given SpaceX and T-Mobile temporary approval for direct-to-cell service using Starlink satellites in areas affected by Hurricane Helene. SpaceX has also mentioned that the Starlink satellites "have already been enabled and started broadcasting emergency alerts to cellphones on all networks in North Carolina." The company also said it may "test basic texting (SMS) capabilities for most cell phones on the T-Mobile network in North Carolina."
• Social Inclusion: Bridges the digital divide by offering access to information, social services, and communication, reducing isolation and promoting inclusion.

For more details, refer to ABI Research's Connecting the Unconnected: Utilizing SatCom to Close the Digital Divide report (AN-5864).

The satellite Internet market is dominated by a few key service providers that are revolutionizing global connectivity. Besides Starlink, other major players include OneWeb and Telesat, which also use LEO satellites to provide coverage in underserved areas, and Viasat and Hughesnet, which offer geostationary satellite services that are well-established for rural connectivity. Amazon's Project Kuiper is another upcoming contender aiming to compete in the LEO space, promising to deliver widespread Internet access globally. China's "Thousand Sails" Qianfan constellation is China's answer to the growing demand for satellite-based Internet services. ABI Research projects that satellite broadband subscriptions revenue could potentially exceed US$25 billion by 2032, driven by an impressive Compound Annual Growth Rate (CAGR) of 11%. Again, for more details, please refer to ABI Research's Connecting the Unconnected: Utilizing SatCom to Close the Digital Divide report (AN-5864).

For the companies in the satellite Internet market, ABI Research has four key recommendations that can help ensure sustainable growth and maximize impact for their satellite Internet service:

• Focus on Affordability and Accessibility: Satellite Internet companies should consider adopting localized pricing strategies to make satellite Internet affordable for the underserved and unserved regions. Providing flexible plans and subsidizing costs in collaboration with governments can improve market penetration and accessibility.
• Drive Social Impact Initiatives: The companies should engage in initiatives that could drive social impact, such as offering free or subsidized Internet access to schools, healthcare facilities, and community centers in remote areas. Collaborating with Non-Governmental Organizations (NGOs) and international organizations can also help extend the reach of these social initiatives, building brand trust and creating long-term value.
• Partner with Communication Service Providers (CSPs) to Offer Hybrid Connectivity Solutions: Satellite Internet companies could also consider partnering with CSPs to provide hybrid connectivity solutions, where satellite and terrestrial services are integrated. This will help ensure uninterrupted service, especially in areas prone to network disruptions.
• Partnerships with Local Governments and Telecoms Operators: Establishing partnerships with local governments and telecoms operators can facilitate regulatory compliance, leverage existing infrastructure, and share the costs of deployment. Such collaborations can also help satellite providers access new regions more efficiently.

By focusing on these strategic recommendations, stakeholders and companies in the satellite Internet market can not only achieve business growth, but also contribute meaningfully to bridging the global digital divide and creating a more inclusive connected world.