Comment Lets see how it evolves (Score 2) 122
Starlink have put out their first product, lets see how the business model evolves. The real advantage is the constellation at low earth orbit vs geostationary satellites that serve a continent or country only. The method is more costly overall simply due to how many satellites need to be put up, but increases possible throughput as there is effectively more base stations in the sky, and low latency simply because the satellites are closer to the ground. The real trick and risky part with this business model is getting full coverage to start with and selling it all to cover ongoing costs and expansion, adding in capacity is then less expensive than other models as you can keep adding in single cheap to launch low orbit satellites to match demand, which de-risks further investment in launches and system capacity.
I suspect this is actually priced about right for middle class, digital self-employed or remote workers looking to move to more rural and remote properties. Seen an increase in demand now I suspect because of covid-19. Low latency reasonably reliable internet anywhere combined with Tesla powerwalls and solar cells, looks like Elon Musk is aiming to enable off-grid log cabin in the woods digital workers... Interesting that if this is the only viable internet available with the bandwidth and latency required, it's a captive market in a few years time once enough people have changed their lives for it.
As another example, cost of putting this on a farm as a central service for the business is easily swallowed by all the other running costs of a farm that easily dwarf this cost. Add in mining operations who can take massive amounts of data if available, and may even run a cell network at the site with the data provided, but their demands would be much higher than available from a single subscription. Wealthy yacht and RV owners will also be all over this.