A source told VietNamNet that Starlink is expected to charge around US$85 per month for its service in Vietnam. Users would also need to pay about US$350 for the initial equipment package, raising questions about how competitive the service can be compared with fiber broadband and mobile Internet, both of which are relatively inexpensive in the country.

Despite the higher price, Starlink still offers certain advantages. The biggest benefit of satellite Internet is that it does not require ground-based fiber infrastructure. Users simply install a signal receiver and can access the Internet.

First-year costs could exceed VND30 million

Starlink is a satellite Internet system developed by SpaceX, operating through a network of thousands of low Earth orbit satellites.

Unlike traditional Internet services that rely on fiber cables or terrestrial network infrastructure, Starlink transmits signals directly from satellites to user terminals on the ground.

To use the service, customers must purchase a terminal kit that includes a satellite dish, a Wi-Fi router and a power supply. Based on projected information for the Vietnamese market, this equipment is expected to cost about US$350, equivalent to roughly VND9 million (US$350).

In addition to the hardware, users would pay a monthly subscription of US$85, equivalent to around VND2.2 million (US$85), to maintain the service.

If calculated for the first year, the total cost would include the US$350 terminal kit and a yearly subscription of US$1,020. This brings the first-year total to about US$1,370, or roughly VND34-35 million (US$1,370).

From the second year onward, users would only pay the subscription fee of about US$1,020 annually, equivalent to around VND26 million (US$1,020).

These figures suggest that satellite Internet remains relatively expensive compared with average income levels and telecommunications costs in Vietnam.

Much higher than fiber broadband and mobile Internet

For many years, Vietnam has been considered one of the countries with the lowest Internet costs in the world. Fiber infrastructure has been widely deployed by major telecom companies such as Viettel, VNPT and FPT Telecom.

Currently, common fiber broadband packages are priced at around VND180,000 - VND220,000 per month for basic plans, about VND230,000 - VND300,000 for mid-tier packages, and roughly VND350,000 - VND500,000 for high-speed services.

At these prices, users can access Internet speeds ranging from 150 Mbps to 1 Gbps, sufficient for work, study and entertainment.

Compared directly, Starlink’s projected fee of around VND2.2 million per month is roughly seven to ten times higher than fiber broadband.

In addition to fixed broadband, Vietnam’s mobile infrastructure has also developed rapidly in recent years. Fourth-generation mobile networks already cover nearly the entire country, while 5G services are being rolled out in major cities.

Mobile data packages are also relatively affordable, enabling users to access the Internet almost anywhere. This makes it difficult for Starlink to compete directly in urban areas, where consumers already have multiple connectivity options at reasonable costs.

Satellite Internet’s niche

Even with its higher price, Starlink still offers unique advantages. Satellite Internet does not require fiber cables on the ground, meaning users only need to install receiving equipment to connect.

This makes it particularly useful in locations where deploying fiber infrastructure is difficult or prohibitively expensive, such as mountainous regions, sparsely populated communities, remote islands, offshore operations or construction and mining sites in isolated areas.

In these cases, satellite Internet can often be deployed much faster than building traditional telecom infrastructure.

Starlink could also serve as a backup Internet connection for businesses. When international submarine fiber cables experience disruptions, Internet speeds in Vietnam can be significantly affected.

In the past, major submarine cable systems such as Asia-America Gateway and Asia Pacific Gateway have experienced repeated outages, disrupting international connectivity. In such situations, satellite Internet could help maintain stable connections.

A niche market in the early stages

With a monthly price of about VND2.2 million (US$85), Starlink is unlikely to become a mainstream household service in major Vietnamese cities during its early rollout.

Instead, the service will likely focus on specialized market segments where traditional telecom infrastructure has not yet reached or where deployment costs are too high.

Over the longer term, however, the emergence of satellite Internet could still reshape parts of the telecommunications market. If equipment costs fall and subscription prices become more suitable for developing economies, Starlink could eventually become a more common connectivity option.

In the broader landscape of telecommunications, satellite Internet is more likely to complement fiber and mobile networks rather than replace them entirely.

This suggests that the future of Internet connectivity may involve a combination of technologies - from fiber broadband and 4G and 5G networks to low Earth orbit satellites - ensuring reliable connections across all regions and conditions.

Thai Khang