Starlink has been delivering the satellite communication industry a master class in modern B2B pricing.
When Starlink’s low-Earth orbit satellites burst onto the scene, it wasn’t just a technology revolution. It was a pricing earthquake. The old guard—Viasat, SES, Eutelsat, Intelsat—found themselves scrambling. Why? Because Starlink’s pricing proved just how much complex pricing kills deals.
Old School Pricing For Satellite Communication
Satellite operators are the bee’s knees in price discrimination. Buying connectivity from incumbent satellite operators means wading through a swamp of complexity.
Want to buy a satellite connection? Brace yourself, and bring aspirin:
- What speed do you need? 2 Mbps, 3 Mpbs 5 Mpbs … pick your flavor. You get to pick two flavors – upload and download speeds – each with a different price tag of course
- Do you need a speed guarantee”? Sure, pay a premium for a Committed Information Rate (CIR)
- Do you need to encrypt communication? Extra Cost
- Where do you need communication? Was it over the Red Sea, over the Atlantic, globally? Different zone, different price.
- Yes, but do you need to communicate from the point of departure to the area where you are paying for the service communication? Extra Cost
- Oh, you wanted a Service Level Agreement? Uptime and support tiers, each with its own dollar figure.
- How long did you need satellite communication for? Discounts for multi-year deals. Sky-high “flexibility fees” for monthly terms.
- OK, now let’s talk about the Antenna: …
For buyers, no two deals are ever priced the same.
For sellers, there are so many parameters to consider that the pricing model is an Excel workbook, not a pricing sheet.
Starlink’s Contrarian Play: Simplicity Sells
Then came Starlink. Everything incumbents believe is needed to price for service was thrown out. Starlink sells satellite communication services like a consumer mobile plan. Their pricing is so simple and transparent, it’s almost jarring.
- Pay a flat monthly fee for a 50 Gb data allowance, or go unlimited.
- Bandwidth? Best efforts
- Coverage? Where there’s coverage
- Support? Best efforts – although they are beginning to offer a Premium SLA, it appears
- Antenna? choice of one or two
Starlink’s message is clear: if buyers can’t understand your pricing in 30 seconds, you’re doing it wrong.
And the Winner Is…
Here’s what’s happening in satellite communication: Incumbents are losing market share. Customers are moving to Starlink for simple satellite communication needs. Incumbents are retreating to serve complex needs that Starlink can’t serve.
Satellite communication incumbents who maximized revenue through price discrimination are forced to rethink how they price, and are losing margin in the process. Their hand has been forced by an upstart entrant.
The Lesson – Rethink Pricing: Clarity Over Complexity
Pricing complexity is not clever. A sprawling matrix of options breeds hesitation. It kills deal momentum.
Pricing discrimination breeds suspicion. It gets in the way of building trust.
The Starlink effect is real. Transparent pricing inspires trust, and trust closes deals. Offering simpler, more transparent pricing than the rest of your industry isn’t risky. It’s your edge.
Want to grow? Kill pricing complexity. Share your structure openly. Earn trust before the first sales call.
You think your industry is different?
Your buyers only accept pricing discrimination, require extensive customization, and accept complex deals, until they don’t have to. That happens once a market participant consumerizes pricing in your industry. Someone who doesn’t have anything to lose: a new entrant, a tier 2 provider out to have your lunch.
I’d love to hear how you’ve simplified your pricing. Your war stories matter more than any pricing textbook.
Do you need help to build a prosperous financial research and data vendor?
Book a call with Asteri
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