Amazon’s Satellite Internet Entry Poses Challenge as Starlink ARPU Slumps
AMZN•SpaceX’s Starlink unit generated $11.39 billion in 2025 revenue with a 63% EBITDA margin, but its average revenue per user fell from $99 to $66 monthly by March 2026. Amazon’s planned satellite internet entry could intensify competition and pressure Starlink’s market share.
1. Starlink’s Rapid Revenue Growth
Starlink booked $11.39 billion in connectivity revenue in 2025, a 50% increase year-over-year, contributing over 60% of SpaceX’s $18 billion total revenue. The segment achieved an operating profit of $4.42 billion and adjusted EBITDA of $7.17 billion, representing a 63% margin.
2. Declining ARPU and Regional Mix
Average revenue per user declined from $99 per month in 2023 to $66 by March 2026 as subscriber growth shifted toward lower-income regions with GDP-adjusted pricing. While plan prices rose by $5 to $10 in May 2026, continued downward pressure on per-user revenues is anticipated as the customer base expands into more price-sensitive markets.
3. Amazon’s Prospective Satellite Initiative
Amazon is positioned as a new entrant in the satellite internet space, targeting mainstream markets where Starlink faces growing competition from fiber, cable and fixed wireless providers. Should Amazon launch its service at scale, it could exert pricing pressure on Starlink and influence Amazon’s own margins and capital investment strategy.
