Starlink’s Residential Lite Plan Can Save You $40 a Month, but There’s a Big Catch

Starlink internet service has become a powerful option for frequent travelers and people looking to connect from less-populated areas, but the cost has generally been prohibitive for many customers. To address that gap, the satellite internet service provider recently released a new budget-friendly internet plan called Residential Lite. 

Residential Lite reduces the monthly cost of Starlink from $120 to $80 in select areas. That’s a $40 discount for customers in 30 US states, making it one of the most significant price drops we’ve seen from Starlink yet. But of course, there’s a trade-off. 

While Residential still offers unlimited data, its download speeds are slower — about 45 to 130 megabits per second, according to Starlink’s official FAQ. That speed might be enough for everyday browsing and streaming, but it won’t match the performance of Starlink’s standard plan.  

Still, if you’re in one of the eligible states and need reliable rural internet access without paying top-tier prices, this lighter plan could be exactly what you’ve been waiting for.

The less expensive plan has some caveats. It’s half the speed of the Residential plan, which boasts download speeds of 100 to 270Mbps. In addition, Starlink acknowledges that Residential Lite plans will be the first to be deprioritized, which may result in lower speeds during peak hours.

“This service plan will be deprioritized compared to Residential service during peak hours,” Starlink says. “This means speeds may be slower for Residential Lite service relative to Residential service when our network has the most users online.”

Peak hours are generally between 6 to 11 p.m. on weekdays. That’s right around when everyone finishes work and school and sits down to eat dinner, play video games or watch some Netflix before bed. Starlink says its network is a “finite resource” until the company can reach a peak number of Starlink satellites. Thus, Residential Lite subscribers may experience slow internet speeds if enough people are online. 

The big picture for low-income households

The Affordable Connectivity Program ended last year, due to funds running out. Before the ACP ended, the government subsidized low-income households from $30 to $75 per month to help them get internet in their homes. The end of the program saw around 23 million households lose their internet connection. While Congress has not yet passed a similar bill or found a way to revive the ACP, other low-cost internet options exist.

At $80 per month, the Residential Lite plan from Starlink is quite affordable for satellite internet service, but it’s still not quite as good a deal as faster broadband plans from major ISP providers. For instance, I pay $80 per month to Spectrum for much faster, 600Mbps download speeds. For around the same price, Cox offers 250Mbps. AT&T Fiber’s 300Mbps plan is $55 monthly, and Xfinity is even cheaper with a 400Mbps plan at a starting price of $40.

People looking for cheap internet have more affordable broadband options than Starlink’s Residential Lite tier. But this less expensive, albeit slower, plan could appeal to those in rural areas without many ISP options.