Starlink Congestion Charge Up to $1,500. When Will Capacity Increase?

Starlink continues to charge a demand surcharge for new Residential customers in select regions to control network congestion, but many buyers are shocked that the one-time fee in their area can be up to $1,500. Several potential customers reported on social media about the hefty surcharge. 

The $1,500 surcharge is appearing in cities across Alaska, where internet options are few and far between, especially much-sought-after fiber services. So, it's understandable that Starlink is a popular option in the region, with few reliable choices. 

Meanwhile, other locations that previously had surcharges of up to $1,000, such as the Pacific Northwest, have seen them drop to $500, which is still a high price for satellite internet service.

Before the congestion charges, Starlink was “Sold Out” in several regions, and buyers were placed on a waitlist with a deposit. The Pacific Northwest and the Atlantic Southeast have frequently been subject to Starlink's network congestion rules. 

The waitlists were recently lifted in several regions in favor of one-time congestion charges, though they could reach $250 for many. Now that North Carolina, Oregon, and Washington are no longer marked as sold out, customers can purchase Starlink, but with a large one-time fee.

It’s unknown how long Starlink will apply the demand surcharge in these regions, but since it’s tied to bandwidth, it will likely remain until SpaceX can launch more and newer satellites to expand the network’s capacity. While the congestion charges have been in place, SpaceX has since launched hundreds more Starlink satellites, but the surcharges still persist. Starlink has promised that more satellites, along with next-generation technology, will improve capacity, but it's unknown how many satellites will be required until the surcharges are lifted. 

For potential customers playing the waiting game until surcharges are lowered or lifted, it could be a while, since SpaceX is still testing its Starship rocket, which will carry its third-generation Starlink satellites meant to increase speed and capacity. 

Inversely, Starlink is continuing to offer discounts in areas with excess capacity, including a deal to give its equipment to residents for free in exchange for a 12-month commitment to the service. 

Starlink has been very popular on the West Coast, with much of the northwest and many of California’s major cities also being subject to waitlists. Sections of the Southeast that were affected by back-to-back hurricanes received several months of free service from Starlink, bringing the regions up to the network’s capacity. 

The congestion charge also applies to current customers who deactivated service and were caught off guard by the fee when they went to reactivate.   

“Is it just me or is this exorbitant and disgusting?” posted a Reddit user from western North Carolina. “$100, $200… fine. Still ridiculous, but fine. But $500, when people have already been through so much, homes and properties damaged or completely destroyed, savings depleted.”