The Starlink branch of Elon Musk's SpaceX rocket launching conglomerate has been managing satellite Internet coverage in the US by imposing waitlists and extra fees in congested areas, or discounting the equipment and waiving charges in states where Starlink subscription numbers are low.
It has now started removing waitlists in various cities, replacing them with a much higher congestion charge instead. Many customers who were waiting for a Starlink Residential plan subscription invitation in cities like Sacramento, Phoenix, San Diego, or in Central Florida got one, but it was not what they expected.
SpaceX has increased the congestion charge for those who want to get off the waitlist and start using satellite Internet right now, from $100 before to $250 now. This basically takes the initial Starlink Residential Kit purchase price back to the $600 level it was at many moons ago. The dish and router set cost $349, and the congestion fee is now $250, with some state tax added for a good measure.
Thus, the outlay to become a Starlink satellite Internet subscriber becomes nearly $630 in Sacramento, CA, for instance, all the while a user in Kansas can have the whole kit for $149 with Starlink's Regional Savings program discount of $200, and no exorbitant congestion charge.
SpaceX has been having issues with the growing popularity of Starlink's satellite Internet in the US, with capacity often running behind demand, and has been throttling excessive data users, even on its Priority tier.
The congestion fee increase seems to be an effective way to manage subscriptions in high-demand areas, though, as users who were confronted with the one-time $250 charge are saying they'd rather go back on the waitlist than shell out more than the current price of a Starlink Mini Kit for a Residential dish.