Elon Musk’s satellite internet provider Starlink has begun undercutting traditional broadband providers in the UK after introducing aggressive price cuts, increasing competition in the UK fixed-line market.
Starlink now offers high-speed broadband in selected parts of the UK for just £35 per month, down from the previous starting price of £55. The move puts the satellite service below comparable packages from BT, which charges around £40 a month, and Virgin Media O2, whose equivalent service costs £36.
Even taking Starlink’s £94 installation fee into account, analysts note the service is still cheaper than BT on a typical 24-month contract. The package offers download speeds of around 100 Mbps, putting it firmly in the “ultra-fast” category, suitable for streaming, gaming and video calling across multiple devices.
The price cuts mark a significant escalation in Starlink’s push into the UK broadband market and are likely to accelerate customer exodus from incumbent providers.
James Ratzer, an analyst at New Street Research, said the move was a clear warning shot for the industry. “Starlink is becoming an incremental player in the UK broadband market and this will put further pressure on BT through line losses at Openreach and, to a lesser extent, Virgin Media O2,” he said.
Openreach, wholly owned by BT, maintains the physical broadband network used by most UK internet service providers. Any continued loss of customers due to satellite or cellular alternatives could weaken the Company’s long-term economic viability.
The timing of Starlink’s price cuts is unfortunate for BT as the company is already under scrutiny as it transitions to digital landlines after reports some elderly and vulnerable customers were left without an internet connection over the Christmas period. If such problems are found to be widespread, the company could face regulatory attention from Ofcom.
Starlink, part of SpaceX, operates a constellation of around 9,500 satellites in low Earth orbit, enabling it to provide broadband to remote and rural areas with poor landline coverage. The service is also being explored as a solution to patchy connectivity on rail and other transport routes.
As of mid-2025, Starlink had around 110,000 British customers. Analysts expect that number could rise to as many as 350,000 in the coming years, representing more than 1 percent of the total broadband market, as prices fall and coverage increases.
Until recently, Starlink’s premium pricing limited its appeal to rural households and niche users. The new £35 tariff, introduced just two months after the standard monthly price was cut from £75 to £55, signals a conscious shift towards mass market competition.
Competitive pressures are also being heightened by the expected arrival of a rival satellite service from Jeff Bezos, with Amazon preparing to launch its Project Kuiper (sometimes called Amazon Leo) later this year.
Satellite broadband and fixed wireless access are increasingly seen as viable alternatives to traditional fiber and copper networks. New Street Research previously estimated that subscriptions to traditional broadband services could fall by 250,000 in a single year, the first decline on record.
In response, established telecommunications companies are hedging their bets. BT has teamed up with Starlink to serve remote rural areas, while O2 has a broader deal with Musk’s company that includes plans for a direct-to-mobile satellite service. Vodafone, meanwhile, has partnered with AST SpaceMobile and recently received regulatory approval to begin testing satellite-based mobile connectivity in the UK.
As price competition heats up, Starlink’s latest move signals that the UK broadband market is entering a new phase where space-based networks are no longer a niche solution but a direct competitor to the country’s flagship telecoms brands.
