Analyst: Starlink Expanding Service, ‘Light Years’ Ahead of Competition
Starlink has about 6,700 operational satellites in low Earth orbit.
Blake Ledbetter
WASHINGTON, Jan. 9, 2025 – Elon Musk's satellite Internet company Starlink might roll out services that could take broadband ISPs like Comcast and Charter by surprise.
"Starlink is likely to develop into a new Over the Top (OTT) service in the coming years, creating another risk for broadband incumbents," said Strand Consult in its predictions for 2025.
When asked to explain the OTT concept, Strand Consult analyst Roslyn Layton said in an email to Broadband Breakfast, "In the same way that other broadband service providers have moved from providing connectivity to providing a combination of connectivity and services, we expect Starlink to move up the value chain to maintain or increase their ARPU [average revenue per user]. This is one of those predictions that is very easy to make in a world where all broadband providers are talking about going from selling connectivity to selling services.”
Layton said recent news about a possible Starlink deal with the Italian government reinforced her view about how the satellite Internet Service Provider is about to branch out.
"We are talking about [Virtual private network] VPN-based services as well as different types of communication solutions that are optimized for the type of connections that Starlink sells to their customers. I don't suspect that the solution that Starlink is about to sell to the Italian government is little more than just a basic connection,” Layton said.
According to Politico, “SpaceX would provide encryption services for the [Italian] government and communications infrastructure for the military and emergency services.”
Strand Consult, an independent consultancy in Europe with a strong focus on the telecom industry, said it didn't think Amazon's Project Kuiper stood much of a chance in competition with Starlink, comparing Kuiper to "a burger bar while Musk runs an interstellar McDonald’s."
Strand Consult does not think the market will support Starlink's competitors. "Kuiper and OneWeb do not have the muscle to challenge Starlink," Strand Consult said. "SpaceX and Starlink are light years ahead of their competitors."
Starlink has about 5 million Internet subscribers globally, according to SpaceX President and COO Gwynne Shotwell. In late September, Shotwell confirmed having 4 million subscribers, up from 3 million in May. Starlink has about 6,700 operational satellites in low Earth orbit.
