Satellite internet provider Viasat has reported an 83% reduction in its US subscriber base since the launch of rival Starlink in fall 2020. Viasat’s Q3 earnings showed a drop to approximately 100,000 fixed satellite broadband subscribers, down from 603,000 in 2020 Q3. This decline signals a severe competitive erosion in the US residential market, forcing the company to pivot to its new ViaSat-3 Flight 2 (F2) satellite platform and new pricing structures.
The erosion of Viasat’s market share is a direct consequence of the entry of Starlink into the residential broadband space. When Starlink began its beta in October 2020, Viasat’s subscriber base began a steady decline. By 2024, the company had already shed over half its subscribers, and the most recent Q3 figures confirmed the precipitous drop, shedding over half a million households since Starlink’s debut.
Viasat Leans on F2 Satellite as US Subscribers Plunge 83%
- Viasat’s US fixed satellite broadband subscriber count fell from 603,000 in 2020 Q3 to approximately 100,000 in Q3, representing an 83% reduction.
- The company's strategy relies on its new Flight 2 (F2) geostationary satellite, designed for speeds over 100Mbps, to combat market share loss.
- Viasat’s new premium offering, Viasat Unleashed Max, starts at $109.99/month, but remains more expensive than Starlink’s Residential Max plan, which usually costs $130 per month.
Viasat attributed the decline in US subscribers to “seasonally high churn” during the summer months. However, the magnitude of the drop suggests the issue extends far beyond seasonal fluctuations. The primary challenge facing Viasat is a stark comparison between its legacy performance and the technical specifications offered by Starlink.
Prior to the introduction of its newer services, Viasat typically delivered median download rates of 49.12Mbps, according to Ookla. Its service also often suffered from high latency at around 680 milliseconds, compared with 45ms for Starlink.
| Metric | Viasat (Legacy) | Viasat Unleashed Max (New) | Starlink (Residential Max) |
|---|---|---|---|
| Median Download Speed (Reported) | 49.12Mbps | 80Mbps (Baseline) / 200Mbps (Burst) | N/A |
| Latency | 680 ms | 645 ms | 45 ms |
| Price (First Year) | N/A | $109.99 | $130/month |
The introduction of the ViaSat-3 Flight 2 (F2) satellite in early October marked a strategic attempt by Viasat to stabilize its business. CFO Gary Chase stated that the company intends to “leverage improved performance to stabilize the business over the next few quarters” by capitalizing on F2’s improved capabilities. Under this new framework, Viasat rolled out Viasat Unleashed Max, a plan featuring unlimited data and “highest network priority.”
is the leftover 100k mostly places starlink still can't reach
Viasat claims Unleashed Max is designed to handle high usage periods better than generalized networks. The plan offers baseline speeds of 80Mbps and burst speeds up to 200Mbps, with no contracts and free installation. However, the company acknowledged that switching to the ViaSat-3 service requires new equipment and a professional installation, meaning it is not an automatic upgrade for existing customers.
The market’s reception to Viasat’s revitalization efforts remains bifurcated between technical improvement and pricing. While F2 promises better speeds, Viasat Unleashed Max still carries a high price point, starting at $109.99 for the first year, before escalating to $179.99. This is more expensive than Starlink’s Residential Max plan, which usually costs $130 per month.
Starlink's aggressive pricing strategy further complicates the competition. In select areas of the US, Starlink has been offering discounts ranging from 30% to 50% on its residential plans. Deutsche Bank recently estimated that Starlink now maintains a footprint of 4.1 million subscribers across the US. This volume provides a significant barrier to entry for Viasat, despite the latter’s operational improvements.
The core challenge for Viasat is not solely technological, but economic. While Viasat strives for improved network priority, its latency remains high at 645ms, which is a critical differentiator compared to Starlink’s 45ms. Prospective customers must evaluate the trade-off between Viasat’s increased speed ceiling and Starlink’s established reliability and lower introductory costs. This dynamic puts intense pressure on Viasat to accelerate the rollout of F2 and refine its pricing structure to compete with Starlink’s vast scale and deep discount offers.
The market trajectory for Viasat depends on its ability to convert its upgraded hardware and new services into a profitable, scaled user base. Continued subscriber loss since 2020, combined with the necessity of new equipment purchases for current users, places a significant strain on the company’s short-term financial health, regardless of the improved service metrics.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
