Following its price hike in spring, Starlink notifies its customers in North America that the company will be adding a monthly data cap in December.
This policy change is instituting a 1TB "Priority Access" cap for data usage between 7 AM and 11 PM as a response to the US and Canada's new "Fair Use Policy."
Starlink Goes Back On Its Promise Of Unlimited Data
According to CNet, Elon Musk's Starlink put itself apart from its competitors by giving an unlimited data experience to its customers.
However, that will change in December as the company shifts from no data limit to an internet speed reduction once a 1TB allowance is hit.
In an email to customers, the internet provider details that once a customer exceeds the limit, their services will be deprioritized, and they will experience a slower connection.
While the impact of this will not be felt immediately, Starlink still promises to make sure that the customers will not be negatively impacted by limited data browsing.
Engadget writes that customers who do not want to be affected by the 1TB monthly cap can still have additional access to data by paying 25 cents per gigabyte.
While this seems like a small amount at initial glance, Reddit user Nibbloid pointed out that this payment option will cost users $250 for an extra terabyte, which is more expensive than a second subscription.
Furthermore, those with a fixed business service under Starlink face a cap ranging from 500GB to 3TB, and a fee of $1 per GB for extra full-speed data.
Additionally, mobile users have tougher restrictions as they do not have Priority Access for recreational use at all, while commercial and Premium users cap their data at 1TB and 5TB respectively.
Starlink's decision to put a monthly cap on its data consumption for consumers is loosely similar to the limitations put on by land-based internet providers.
These Modifications Come After Crucial Decisions
According to Engadget, the decision to cap customers' data usage at 1TB follows Starlink's call for the government to help Musk fund the company's project in Ukraine.
This costs the company nearly $400 million per year, but whether the government decided to provide aid for Starlink or not, Musk claims that he will pay for that amount regardless.
With this, it is clear that the company is slightly concerned that they can not carry the expenses of the company once additional demand for internet service increases.
Because of this, Starlink claims that its internet is a finite resource, but promises that it will continue to grow as it launches more satellites in space, The Verge reports.
The implementation of the new Fair Use Policy and the company's modified terms of service will also change download speeds from 50-250 Mbps to 20-100 Mbps.
CNet writes that the 1TB cap on Starlink's data is not a tight one, but it can still pose challenges to some of its customers.
On average, a household in the US uses only half of the 1TB worth of data a month, while not even 10% of its current users go beyond that 1TB mark.
Until now, the verdict is out on whether the shift Starlink did was a good move for the company and its customers, but they will just have to see how it will affect users in the foreseeable future for now.
