Elon Musk’s Starlink Offers Cheaper Broadband than BT

Elon Musk’s Starlink is now offering cheaper broadband than BT after rolling out price cuts in the UK.

The satellite broadband firm now offers a high-speed internet package for £35 per month in some areas. This is down from its previous entry-level price of £55.

That compares with £40 for BT’s equivalent service, while Virgin Media O2 charges £36. Even including Starlink’s £94 installation fee, the new package is cheaper than BT over a 24-month contract.

The service delivers download speeds of 100Mbps. This “ultrafast” tier is generally suitable for streaming, gaming, and video calls across multiple devices.

The move signals Starlink’s growing push into Britain’s broadband market.

Analysts expect the pricing shift to accelerate customer losses for established providers, particularly BT.

James Ratzer, an analyst at New Street Research, said: “This serves as a warning that we think Starlink is likely to be an incremental player in the UK broadband market and this is likely to put further pressure on BT through Openreach line losses – and to a lesser extent on VMO2.”

Openreach, which builds and maintains much of the UK’s broadband infrastructure, is wholly owned by BT. The price war adds to existing strain on the company.

BT is already under scrutiny over its digital landline switchover. The former monopoly has been accused of mishandling the rollout.

Some elderly and vulnerable customers were reportedly left without connectivity over Christmas. If issues are found to be widespread, BT could face a potential Ofcom investigation.

Starlink operates a constellation of around 9,500 satellites in low-Earth orbit. These beam internet connections directly to users from space.

The technology allows coverage in remote rural areas. It is also being explored as a solution for unreliable signals on Britain’s rail network.

Starlink, part of Mr Musk’s SpaceX, had about 110,000 UK customers as of June 2025. Analysts believe that figure could rise sharply.

New estimates suggest customer numbers could reach 350,000. That would represent more than 1 per cent of the total UK broadband market.

Until recently, Starlink’s growth was constrained by premium pricing. The latest cuts indicate a shift towards more aggressive competition.

The move also comes as Jeff Bezos prepares a rival satellite broadband service. Amazon is expected to launch its Leo network later in 2026.

Starlink reduced its standard monthly charge from £75 to £55 just two months ago.

Rising demand for satellite broadband is reshaping the market. Growth in Fixed Wireless Access is also eroding demand for traditional services.

New Street Research previously estimated traditional broadband subscriptions would fall by 250,000 in 2025. That would mark the first decline on record.

Established telecoms firms are responding by investing in satellite partnerships. Industry leaders generally view the technology as complementary, not a replacement.

BT has partnered with Starlink to serve remote rural locations. O2 has agreed a broader deal, including a direct-to-mobile service due this year.

Vodafone has formed a joint venture with AST SpaceMobile. It plans to launch satellite mobile services after Ofcom approved the technology last month.

Starlink is also under consideration for emergency services communications. Officials are assessing its suitability for police, ambulance, and fire networks.