“… could save Americans $30B a year.” Podium



"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.

If we assume that just Elon Musk’s Starlink launches, then the 263 million Americans with three or fewer wired broadband providers in their area could collectively save over $14 billion through reduced monthly prices. The remainder of Americans with four or more providers could save an additional $4 billion, pushing the savings to $18 billion.

If both Starlink and Project Kuiper launch, the savings is likely to be even more dramatic, which we estimate to be more than $30 billion as Americans have two additional choices."  Podium


It appears to me that Starlink and Kuiper would bill customers directly, not through middlemen.  Is that correct?  If so, vast swathes of present business entities would simply disappear as unnecessary. pl



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10 Responses to “… could save Americans $30B a year.” Podium

  1. CK says:

    The Sirius satellite radio model is most likely. That means credit cards or pre-paid use cards. Visa and Mastercard will be with us until the first really strong EMP.

  2. Sbin says:

    The first starlink launch was a thing of beauty!
    Will be very interested to see how the system actually works.
    Some of the 5g tech coming online is very promising as well

  3. different clue says:

    Given what I have read about Bezos’s determined multi-front monopoly-building behavior, I would assume Bezos wants to destroy all competing Internet providers in the longest run. He wants to be the John D Rockefeller / Standard Oil of every business area he enters.
    If he is able to drive all the other Internet providers extinct, as I feel confident he wishes to do; he would then raise the price to wherever he likes.
    Also, he and his successors would be able to pick and choose whatever they permit onto their internet, and ban or stealth-ban everything else. Whether he and Musk would conclude a Duopoly Peace-Treaty or whether Bezos would seek to exterminate the Musk Internet as well would be seen in due course.
    If I ever advance to the point of getting real internet into my own home (along with the real computer I will get any time now), I will pay more to get my internet over wires or fiber opticables as long as wires or opticables still exist.
    But then I would say that, wouldn’t I . . . given that I don’t have a cell phone and still do all my phoning on my good old land line phone. I will give up my land line phone when they peel my cold dead copper wire from out of the wall.

  4. Outrage Beyond says:

    I welcome any new options for broadband internet and increased competition.
    With that said, the article was woefully full of fluff and lacking in basic facts.
    The author describes “time to transfer information” as “lower latency” which is an indication of a lack of basic understanding. The time to transfer information would be defined by the upload and download speeds; while latency is the delay before information starts getting transferred. Latency is one of the big problems with satellite internet. If you just want to download a big file, some latency is not a big deal; but if you want to use something more interactive, such as a web app, it could be a huge problem.
    The most frustrating thing about the article is the complete lack of any facts regarding the actual upload and download speeds. Instead, there are just vague statements that it’s “broadband” without defining any minimum speeds. Nor are there any indications of how many simultaneous users these satellites will support.
    Further googling reveals a host of other articles with similar content, and not one that cites any actual speed.

  5. John Minehan says:

    Or would morph into some other service line. Let’s see . . . .

  6. SysATI says:

    Just four you guys information, Xavier Niel, the guy who invented the “internet box” (i.e. internet + IP phone + cable TV) has been providing broadband and fiber internet in France for over 30 years now.
    He has a very simple moto: simplicity..
    Low price: 30-40$/month, full internet access up to 100Mb/s, no limit, no extra or hidden cost of any kind…
    Every time technology evolves, the services evolve but the price stays the same…
    Well, he’s one of the richest man in France now, his company is one of the few that continues to expands so apparently he is doing something right. Of course the other french internet providers had no other choice but adopt the same strategy, lower their prices and increase the services they offer…
    No need for satellites or anything fancy technology to drive prices down and offer a service that’ll satisfy all customers, you just have to want it and do it…
    And just to make you wanna cry 🙂 …
    He also got into the phone business to a few years back…
    Well, the cheapest plan he offers now costs only 2 euros/month…
    Of course it’s not limitless but still…
    For that price you get 2 hours of phone calls pretty much anywhere in the world (well, only 100 countries, not all of them :), 50 Mb of internet and limitless SMS… Not bad hey ?
    PS: I don’t work for them and unfortunately don’t even use their services because I don’t live in France anymore. But I sure would love to see this guy develop his business internationally 🙂

  7. scott s. says:

    There were a couple of interesting articles in the WSJ last week that looked at actual actual bandwidth down used vs what people were paying for. Also on the great disparity in price. This was for typical residential users. I suppose the speed from your access point to the headend is just one factor and bottlenecks are elsewhere.
    scott s.

  8. My brother, living in Sandwich, NH at the foot of the White Mountains, has a copper land line that cannot handle DSL. His internet is provided by a small provider with a LOS radio shot to what amounts to an internet hot spot mounted on top of a fire tower. How the connection gets from the fire tower to the internet is still a mystery to me, probably through some kind of wire connection. A lot of people live in these environments where cable and telecom companies won’t provide service. Starlink and Kuiper will be a boon to people like my brother.

  9. John Minehan says:

    Here’s the potential issue: at a certain point people get tired of teh Model A.

  10. Dave Schuler says:

    According to the Bureau of Labor Statistics’s Household Survey, Americans spend about $170 billion on Internet connectivity annually. A $30 billion savings is good but it’s not incredible—about 18%. More likely it would provide connectivity to those without it rather than saving anybody anything.

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