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August 25, 2019 07:34 pm

Musk and Bezos' Satellite Internet Could Save Consumers Billions of Dollars

"The fight for space internet supremacy is on," writes the consumer policy expert at BroadbandNow, calculating the benefits of these additional broadband competitors:Low Earth orbit (LEO) satellites for broadband internet access are beginning to display signs of real potential. Recently, Amazon chief Jeff Bezos' Blue Origin pulled back the curtain on its space intentions by announcing Project Kuiper, a 3,236-satellite constellation. Additionally, Elon Musk's SpaceX Starlink recently launched a rocket containing 60 satellites from Florida's Cape Canaveral... Both players, alongside others like OneWeb, are spending billions in space in hopes of making further billions annually once the satellites go into service for consumers in the US and around the globe. SpaceX will initially launch service to North America, but once its full array is in place, the company has plans to roll the service out across the entire planet. Ostensibly, anywhere with access to open skies could be covered. Amazon has global aspirations for its project as well... The arrival of this technology is likely to drive down monthly internet prices for hundreds-of-millions of Americans... According to further analysis of our market-wide pricing database covering plans and pricing from more than 2,000 ISPs, the average "lowest available monthly price" for the estimated 104 million Americans with only one wired broadband provider is $68. For the 75 million Americans with two choices, that average lowest price drops to $59. For the lucky 15 million Americans with five or more choices, it's $47. Because LEO technology will ostensibly be available everywhere in the US, as well as globally, this indicates the powerful influence the entrance of the technology will have on internet prices as new markets gain access to an additional true "broadband" option and competition heats-up. Our projections show that that low-latency, LEO satellite internet is likely to have a similar impact on average regional prices as wired, low-latency wired providers. Extrapolating this additional competitor across all US households, the introduction of LEO satellite internet could save Americans over $30 billion... Shortly after, these same transformative benefits could spread to countries across the globe, permanently altering the landscape of the internet as we know it.

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