Starlink's official opening in Vietnam with monthly plans starting at $43 is getting attention for its low-Earth orbit satellite network compared to VSAT services used by vessels and businesses.

Experts say the gap between Starlink and traditional VSAT services is big when looking at speed and monthly costs.

There is an important difference: the $43 and $65 monthly prices in Vietnam are for fixed services, not for Starlink's maritime services.

The arrival of a low-Earth orbit satellite network could put pressure on the traditional satellite internet model.

Starlink offers much higher speeds at similar prices.

A Starlink plan with 100 Mbps costs about $43 per month, and a package with speeds over 400 Mbps costs about $65 per month.

This is much lower than the $85 monthly price expected before the service became available in Vietnam.

Traditional VSAT services have a very different pricing structure.

Some VNPT VSAT-IP packages cost around $61 per month for 3,072 Kbps, and a package with up to 4,096 Kbps costs about $80 per month.

Other packages range from $139 to $199 per month for speeds of only 3-4 Mbps.

The difference is striking: for around $65 a month, Starlink offers speeds over 400 Mbps, while some similarly priced VSAT packages provide only a few Mbps.

This is not a fair comparison.

Traditional VSAT services are designed for specialized connectivity needs and include satellite capacity, terminals, and support.

Starlink is a broadband internet network using thousands of low-Earth orbit satellites for direct internet connectivity.

The difference in technology and business model explains how Starlink can deliver high speeds at low prices.

The gap is bigger for dedicated VSAT capacity.

When businesses need dedicated satellite capacity, the price difference can be huge.

A dedicated 2 Mbps satellite channel can cost over $7,060 per month, and a 1 Mbps channel can exceed $3,530 per month.

This reflects a different model where customers pay for access to expensive satellite transmission capacity.

Starlink changes this through its large number of satellites orbiting close to Earth.

The most significant shift may be the cost per Mbps.

If connectivity costs fall sharply, satellite internet can become more accessible.

This possibility makes Starlink's arrival significant for Vietnam's maritime sector.

Vessels could be a key market for Starlink.

Fishing boats do not need 400 Mbps internet, but they need enough bandwidth for basic communications.

Offshore vessels cannot access fiber-optic networks and may be far from reliable mobile coverage.

In such cases, satellite connectivity is the primary option, making equipment and subscription costs high.

If Starlink offers maritime services at competitive prices, this could change.

Fishing boats, cargo vessels, and tourist boats could use satellite broadband for digital applications.

Onboard cameras could transmit data, crew members could make video calls, and vessel owners could monitor operations remotely.

Internet access at sea could shift from an expensive service to part of a vessel's digital infrastructure.

It is important not to assume Starlink's fixed-service plans will apply to ships.

Starlink's international offerings for mobility and maritime use have different pricing and hardware requirements.

The actual impact on Vietnam's maritime connectivity market will depend on the packages and conditions under which Starlink offers services to vessels.

Starlink could trigger a price shock for internet at sea.

The most consequential issue is whether Starlink can lower the cost of each Mbps delivered offshore.

If bandwidth becomes cheaper, applications that were previously uneconomical could become practical.

Video surveillance, IoT devices, and online services for crews could become easier to deploy.

This could put pressure on traditional VSAT providers, especially among customers who need ordinary internet connectivity.

VSAT is unlikely to disappear.

Traditional satellite services retain advantages for specialized applications and customers with particular demands.

The emerging competition may be about Starlink pushing satellite broadband prices to a new baseline and forcing established providers to adapt.

For Vietnam, this could be one of the most significant consequences of Starlink's entry.

If maritime Starlink services become available for a few million dong a month, fishing vessels and cargo ships could benefit.

Some tourist vessels have installed Starlink equipment without authorization.

Official service availability in Vietnam changes the landscape, but users must ensure their service plan and use are authorized.

Starlink's greatest impact may not be its speed, but its potential to turn satellite bandwidth into accessible internet infrastructure.

Thai Khang