Share Elon Musk’s satellite internet venture, Starlink, has intensified the competition in the British broadband market by slashing prices to levels that now undercut traditional industry leader BT. The move signals a major shift for the SpaceX-owned company, transitioning from a premium niche service for remote areas to a direct competitor for mainstream UK households. Following a series of aggressive price cuts, Starlink has launched a high-speed internet tier priced at just £35 per month in selected areas. This marks a significant drop from its previous entry-level cost of £55 and positions it as a cheaper alternative to BT’s equivalent package, which currently retails for £40. Even Virgin Media O2 (VMO2), typically known for competitive pricing, sits slightly higher at £36 per month. Industry analysts suggest that even when Starlink’s £94 hardware installation fee is factored in, the service remains more cost-effective than BT over the course of a standard 24-month contract. The discounted package provides download speeds of 100Mbps, a threshold classified as “ultrafast” and suitable for high-demand activities such as 4K streaming, online gaming, and simultaneous video conferencing. The timing of the price war is particularly challenging for BT. The former monopoly is currently facing scrutiny over its digital landline switchover and the loss of customers on its Openreach network. Analysts at New Street Research warned that Starlink is becoming an “incremental player” in the market, likely leading to further customer losses for flagship brands. Starlink’s infrastructure relies on a constellation of approximately 9,500 low-earth orbit satellites, allowing it to provide connectivity in rural “not-spots” where traditional fibre cables are difficult to install. While the company had roughly 110,000 UK customers as of mid-2025, experts predict that this figure could more than triple to 350,000 as Musk targets a 1% share of the total UK market. The move is also seen as a pre-emptive strike against Jeff Bezos’s Amazon, which is preparing to launch a rival satellite service, Amazon Leo, later this year. As satellite and mobile alternatives gain traction, traditional providers are seeing the first subscriber declines in history, forcing a race to integrate space-based technology into their own networks. For latest tech stories go to TechDigest.tv Share this: