Starlink slammed for leaving users worse off, but critics are forgetting one detail
A recent price hike and alleged moves to keep rivals out have critics labeling Starlink as a monopoly.
Is Starlink really the pariah its critics paint it to be? | Image by PhoneArena
For customers in underserved areas, SpaceX's Starlink internet is a lifeline. However, critics accuse the company of turning a lack of rural options into an advantage for itself.
The only option
In May, Starlink announced it was bumping up prices on six of its plans by $5 to $10 per month. For some users, that translates to a staggering 40% to 44% increase in total cost.
I can complain about Starlink raising their prices, but it’s the only real option we have.
Julie Slama, Starlink customer, June 2026
Naturally, customers are wondering if Starlink has gotten bold because rural folks have nowhere else to turn.
Additionally, the company is facing backlash for trying to keep competition out. For instance, Starlink recently urged the Federal Communications Commission (FCC) to shut down a $4.5 billion broadband program created to incentivize internet service providers to serve rural areas. Starlink claims it has 'effectively' solved the problem.
They’re monopolizing the market and calling it doing us a favor.
Austin Ahlman, independent congressional candidate, June 2026
The problem goes far deeper
Elon Musk is also said to have benefited from his friendship with President Donald Trump, who has wound down certain rural broadband funds and redirected chunks of what remained toward satellite options.
Musk also reportedly caught the attention of Commerce Secretary Howard Lutnick during their overlap on the Department of Government Efficiency (DOGE) cost-cutting initiative. This allegedly made the $42 billion Broadband Equity, Access, and Deployment (BEAD) program more partial to Starlink. Suddenly, Starlink qualified for grants that previously would have gone to fiber.
Take Nebraska, for example. Republican governor Jim Pillen used only $45 million out of the $400 million in BEAD funding his state was granted, adopting a technology-neutral approach. This left critics to argue that Starlink is the reason he thought other options weren't necessary, making it even more powerful.
The Nebraska Broadband Office does not believe a disproportionate amount of locations have been allocated to LEOs.
Nebraska Broadband Office, June 2026
Is it really cheaper?
While Starlink is preferred by budget-conscious customers right now, policy activist Sascha Meinrath argues it will cost customers more than fiber in the long run.
Over time that all-in cost for satellite will be much greater than fiber. It’s just that the cost will be borne by the end user.
Sascha Meinrath, Palmer Chair in Telecommunications at Penn State University, June 2026
While fiber is faster and more reliable than satellite-powered internet, extending it to homes is costly and time-consuming. On the other hand, Starlink satellites are constantly traversing the sky, making it the only option for customers who have no other way to get internet.
Musk has grand ambitions for the service, envisioning a future where it carries the bulk of the internet traffic. SpaceX said in its filing that Starlink has an addressable market of 3.3 billion potential users. It also happens to be SpaceX's primary cash cow.
What do you think of Starlink?
Constraints
Starlink may not be able to compete against fiber and other technologies in populated areas. Data shows that when seven or more users log on within a square mile, Starlink's upload speeds drop below the federal definition of broadband.
While the company regularly launches new satellites to address those issues, trees and roofs can still be obstructions.
More criticism than due?
Much of the anger recently directed at Starlink stems from the price hikes, but those were its first since 2023. Other internet companies have also raised prices during that period, so it's hardly a villain.
As for Starlink shutting out competition, it's worth remembering that Musk spent only 130 days at DOGE and had a falling out with Trump not long after he took charge. Wireline internet companies abandoned rural and remote areas long ago because they weren't profitable.
There was no competition to kill. Starlink just swooped in and used the situation to its advantage, which is typical of corporations.
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