New Starlink customers can now pay for hardware via monthly installments of $50 over 12 months, instead of paying $599 upfront.
What Happened: Starlink is the satellite internet service provided by Elon Musk‘s SpaceX with the help of satellites positioned in Earth’s low-Earth orbit.
The satellite dishes to gain internet access, however, are priced at a whopping $599, in addition to the monthly service charge of $120, making it an expensive choice. However, SpaceX is now attempting to make it more affordable, allowing new customers to buy the hardware in $50 monthly installments over 12 months, taking the total payment for the hardware to $600.
Customers will also have to pay a one-time immediate activation fee and applicable shipping, handling, and taxes. The first monthly installment will be charged on the date the dish is activated or 30 days after the equipment ships, whichever is earlier.
Why It Matters: Earlier this month, Starlink announced on social media platform X that it has touched 3 million customers across the globe. The segment achieved a breakeven cash flow only in November 2023.
In 2020, Musk said that SpaceX would probably IPO Starlink when its revenue growth is ‘smooth and predictable.' The billionaire also said retail investors will get top priority in the eventuality of an IPO.
Quilty Space analysts believe that Starlink is set to generate an astounding $6.6 billion in revenue by 2024.
Check out more of Benzinga's Future Of Mobility coverage by following this link.
Photo via Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
