- Starlink is introducing a new “outside region fee” to discourage people from purchasing its satellite internet kits in one region and reselling them in another, where the hardware might be more expensive.
- The fee will be applied to activations outside of the region where the kit was originally sold, with a fee of $200 for Standard and Actuated kits and $300 for the Starlink Mini.
- Starlink recommends purchasing kits directly from the company or authorized retailers within the designated region to avoid the fee.
Starlink is taking a stand against resellers, introducing a new “outside region fee” to discourage the practice of purchasing satellite internet kits in one region, where hardware is cheaper, and reselling them in another.
This move is aimed at preventing arbitrage, a common practice where individuals exploit price differences across regions to make a profit. Starlink has designated six specific regions: the US and Canada, Europe, Asia, Africa, Latin America, and Oceania.
The “outside region fee” is a significant deterrent, ranging from $200 for Standard and Standard Actuated kits to $300 for the Starlink Mini. This fee, which can be applied in USD or local currency, could significantly impact the cost of acquiring Starlink services, particularly for those looking to purchase kits in regions where the exchange rate is unfavorable.
Starlink recommends purchasing kits directly from the company or authorized retailers within the designated region to avoid the fee. This move highlights the challenges faced by companies operating across diverse regions with fluctuating prices and the need to control distribution channels to prevent arbitrage.
What you should know
Starlink is a satellite internet constellation being built by SpaceX, Elon Musk’s space exploration company. It aims to provide high-speed, low-latency broadband internet service to users around the world, particularly in areas where traditional internet infrastructure is limited or unavailable.
Starlink uses a network of thousands of small satellites orbiting Earth to beam internet signals directly to user terminals on the ground. This approach allows for coverage in remote locations, offering a viable alternative to traditional terrestrial internet providers.
The service is gaining popularity for its high speeds, low latency, and wider coverage compared to traditional broadband options. However, it comes with a cost, as Starlink services require specialized equipment (the “dish” and router) and a monthly subscription fee.
