Starlink and US Mobile announced a new partnership offering discounted service bundles for a limited time that combine home satellite internet with mobile data plans. The deal comes as SpaceX, Starlink’s parent, plans its upcoming IPO.
Multicarrier prepaid service US Mobile said it is offering bundles for new and existing customers, including residential Starlink, for as low as $47 per month. Essentially, the cheapest plan combines US Mobile’s base unlimited plan at $17 per month with Starlink’s residential plan at $30 per month, which offers 100 Mbps download speeds.
“We’re launching US Mobile + Starlink as a single bundle. Unlimited Standard or Premium on all three major US networks, plus reliable home internet from space. One plan. One bill. One app,” said US Mobile CEO Ahmed Khattak on Reddit.
The other Starlink bundles can be had for $77 per month for Starlink 200 Mbps (equating to $60 per month for Starlink) and $117 per month for Starlink Max service ($100 per month for Starlink), offering speeds of 400-plus Mbps.
Starlink’s standalone prices for similar plans are $50 per month for 100 Mbps, $80 for 200 Mbps, and $120 for Max, meaning the bundle offers significant savings.
US Mobile is essentially a mobile virtual network operator (MVNO), meaning it does not own the wireless network infrastructure and instead leases it from major carriers for its customers.
What makes US Mobile unique in the marketplace is that it can offer customers the ability to choose the network they want to use, which they call Dark Star (AT&T), Warp (Verizon), and Light Speed (T-Mobile).
The deal with US Mobile is curious, as most other carriers are loath to make a deal with Elon Musk and SpaceX (SPAX.PVT) because it could threaten their mobile business.
“Most carriers are probably annoyed at the few (like T-Mobile) that did do deals with SpaceX, because SpaceX is basically getting to use their government-issued terrestrial spectrum in exchange for SpaceX giving the carriers space spectrum,” a source in the carrier industry told Yahoo Finance. “But that gives SpaceX rights to become a carrier and, in some cases, buy their own terrestrial spectrum, and become a full-blown carrier.”
For US Mobile, the risk may be worth it. Creating a compelling bundle of Starlink satellite internet service and cheap prepaid mobile plans could boost privately held US Mobile’s subscriber numbers.
For Starlink, depending on how many offers and physical kits the company is offering for the bundle, it could be a huge driver of new subscriptions for the service, just as the SpaceX IPO roadshow begins.