Starlink, SpaceX’s low-Earth orbit (LEO) satellite internet service, is accelerating both its speed and subscriber growth strategy in the U.S. broadband market.
The company owned by billionaire Elon Musk is aggressively courting new users by offering free equipment in regions where it has excess capacity — a clear move to quickly scale adoption in underserved areas while maintaining its technological edge.
This strategy hinges on Starlink’s improved network performance. Starlink’s U.S. Internet download speeds nearly doubled from 53.95 Mbps in Q3 2022 to 104.71 Mbps in Q1 2025. Upload speeds followed a similar trajectory, increasing from 7.50 Mbps to 14.84 Mbps over the same period, according to Speedtest data. While only 17.4 percent of U.S. Starlink users currently meet the FCC’s fixed broadband benchmark of 100 Mbps down and 20 Mbps up, that figure is climbing as capacity expands and technology matures.
State-specific data shows performance varies widely — from a download speed of 136.93 Mbps in Maine to 72.65 Mbps in Alaska — indicating that the impact of new user inflow may depend on localized network conditions. However, the ability to offer 100/20 Mbps service to nearly one-fifth of tested users already puts Starlink ahead of many rural broadband alternatives.
Crucially, Starlink’s expansion strategy aligns with evolving regulatory and funding dynamics. The NTIA’s recent decision to treat satellite broadband on par with fiber under the BEAD program opens the door to federal funding, a potential game-changer for Starlink’s rollout in hard-to-serve areas. Complementing this, state-led initiatives in places like Maine and Texas are launching grants to subsidize LEO satellite services for rural households.
Despite questions about whether the network can sustain performance as subscriber counts rise, Starlink’s steady improvements in speed, latency, and reach suggest it’s managing network scale efficiently. If the company continues to add satellites and optimize routing, it may not only handle more users — but also set new benchmarks for rural broadband in the U.S.
Starlink has significantly improved its network latency over time, a critical factor for real-time internet applications. Thanks to its low-Earth orbit satellite system — approximately 340 miles above Earth —Starlink users in the U.S. saw median multi-server latency drop from 76 ms in Q2 2022 to 45 ms in Q1 2025. In contrast, geostationary systems like HughesNet, with satellites about 22,000 miles away, experience much higher latency.
Starlink attributes the latency improvements to expanding its U.S. infrastructure with six new internet connection points (PoPs), optimizing gateway placements and planning algorithms, and rapidly increasing its satellite constellation — from 1,560 in February 2022 to 6,751 by February 2025, with 24 more launched since. Starlink does not reveal its investment in satellite business.
Starlink is offering free equipment worth $350 to new customers in select U.S. regions where it has excess capacity — covering parts or all of 33 states. Customers must sign a one-year contract and choose between two residential plans: $80/month for speeds of 50–100 Mbps or $120/month for 250 Mbps.
Ookla Speedtest data shows download speeds range from 72.65 Mbps in Alaska to 136.93 Mbps in Maine. Importantly, even users in the bottom 25th percentile in many of these states (like Colorado, Nebraska, and Wyoming) are getting over 80 Mbps, indicating available network capacity. This likely motivated Starlink’s targeted promotion.
Latency performance varies, with the best median latency at 38–39 ms in several mainland states. However, Alaska and Hawaii show higher latency (105–115 ms) due to their distance from Starlink’s low Earth orbit satellite network.
TelecomLead.com News Desk
