D.C. Memo: Starlink Ready to Move Beyond Access, Strand Consult Says

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Starlink: Elon Musk's satellite Internet company Starlink might roll out services that could take broadband ISPs like Comcast and Charter by surprise. "Starlink is likely to develop into a new Over the Top (OTT) service in the coming years, creating another risk for broadband incumbents," said Strand Consult in its predictions for 2025. Asked to explain the OTT concept, Strand Consult analyst Roslyn Layton said, "In the same way that other broadband service providers have moved from providing connectivity to providing a combination of connectivity and services, we expect Starlink to move up the value chain to maintain or increase their ARPU. This is one of those predictions that is very easy to make in a world where all broadband providers are talking about going from selling connectivity to selling services," she said. "We are talking about VPN-based services as well as different types of communication solutions that are optimized for the type of connections that Starlink sells to their customers. I don't suspect that the solution that Starlink is about to sell to the Italian government is little more than just a basic connection.” According to Politico, “SpaceX would provide encryption services for the government and communications infrastructure for the military and emergency services.” Last year, Strand Consult said it didn't think Amazon's Project Kuiper stood much of a chance in competition with Starlink, comparing Kuiper to "a burger bar while Musk runs an interstellar McDonald’s." Strand Consult does not think the market will support Starlink's competitors. "Kuiper and OneWeb do not have the muscle to challenge Starlink," Strand Consult said. "SpaceX and Starlink are light years ahead of their competitors."