KeyBanc: Starlink’s Talk of Deep Price Cuts Unlikely to Disrupt Terrestrial Broadband ISPs

WASHINGTON, Sept. 1, 2026 – If a broadband price war breaks out, companies like Comcast and Charter will be ready for the fight, according to one Wall Street analyst.

KeyBanc Capital Markets analyst Brandon Nispel is not overly concerned that potential Starlink price cuts will significantly disrupt terrestrial broadband providers, arguing that fiber and cable operators maintain a cost advantage that could allow them to respond to lower satellite pricing.

His comments followed remarks from SpaceX President and COO Gwynne Shotwell, who said the company plans to make Starlink available at “far more affordable pricing.”  Nispel expects to see more announcements like this one  while noting that Starlink's current offerings remain less competitive with terrestrial broadband.

“While we expect continued announcements like this to pressure broadband companies, we think they have the ultimate cost advantage and can match/beat any pricing Starlink provides,” Nispel said in an Aug. 28 report.

Nispel cited Starlink's $55-per-month plan offering up to 100 Mbps and an $85-per-month option offering up to 200 Mbps. KeyBanc compared those plans with promotional offerings from terrestrial providers, including AT&T's 1 Gbps service for $30 per month when bundled with wireless and Comcast's 1 Gbps service for $50 per month with a five-year price lock.

Nispel also pointed to fixed wireless access as another factor limiting the competitive threat from satellite broadband. FWA, which uses cellular networks to provide internet service to homes, has become a broadband alternative for customers beyond the rural markets where the technology was initially emphasized.

Ookla data cited by Nispel shows that FWA can deliver speeds that compete with many traditional broadband offerings. T-Mobile had the highest median FWA download speed among the major carriers at 223 Mbps, followed by AT&T at 160 Mbps and Verizon at 127 Mbps.

At the 90th percentile, T-Mobile reached 532 Mbps, AT&T reached 419 Mbps, and Verizon reached roughly 310 Mbps.

Nispel said the results demonstrate that FWA can serve a broad range of customers, with speeds sufficient for many typical broadband applications. The analysts said FWA performance could further limit satellite providers' ability to compete, particularly in areas where terrestrial wireless or wired options are available.