commentsOnPizza t1_j9i90f8 wrote
Reply to comment by IDK_PizzaBagel2 in Boston Internet Provider Starry Files for Chapter 11 Bankruptcy by void_boi
Starry has been going downhill for a while (from a business perspective, not your perspective as a customer) and it's hard to see them really recovering.
At this point, it'd be better to hope for home internet from T-Mobile or Verizon 5G.
The problem with Starry is that their wireless signals are extremely high frequency which means that they will be easily disrupted by things like walls, trees, etc. So they install antennas on the top of your building and point it at one of their antennas that they have a good line of sight for. However, this is very limiting and decently expensive.
T-Mobile and Verizon both have substantial low and mid-band spectrum holdings (and more high frequency spectrum holdings than Starry). Unlike Starry, T-Mobile and Verizon's signals can travel from antennas without needing line of sight.
T-Mobile already has 2.6M home internet customers and Verizon (wireless) has 0.9M. Starry has 0.1M. So Verizon's wireless home internet business is 9x larger than Starry's and Verizon has been at this game for less than 2 years. T-Mobile's is 26x larger and they've been at it for around 3 years. Starry has been at it for 7 years without a ton to show for it.
Really, they were going into a capital-intensive industry trying to compete on price with better capitalized incumbents. It's not a great strategy. Starry wasn't going around offering an order of magnitude improvement in service. Their selling point was "we all hate the cable company and we'll offer you stable pricing on a similar product." I'm not arguing that isn't a laudable goal. It is a laudable goal. It's just really hard to do.
T-Mobile and Verizon, on the other hand, both have way more money, way more staff, and a huge investment in infrastructure that they can leverage. "We already have these towers we're upgrading for 5G and we're going to have extra capacity in many areas with those upgrades. We could provide home internet in many of those locations and get extra revenue without extra cost. In other locations, we could put some more money into the network, make our mobile business better, and then sell some home internet." That's a reasonably decent business model leveraging existing strengths that can be extended. For Starry, having to approach all these buildings to get them to either lease space or give them space for free is a very time-intensive business (and staff time is money). Every antenna T-Mobile or Verizon put up can serve thousands of mobile users and cover more home users than Starry. Starry was really working with two hands tied behind its back.
I think in the coming years, T-Mobile and Verizon will continue to improve their home internet product and that will likely include high-gain installed antennas to boost performance, but even today they're making a lot more people happy than Starry was ever able to. Again, I don't mean that as a dig against Starry so much as a realistic view of what one could accomplish given the difference in assets between Starry and T-Mobile or Verizon. Starry doesn't have a truck-full of sub-6GHz spectrum that will offer a decent balance of capacity and coverage. Starry has a bunch of spectrum at 24GHz and 37GHz, but that's a lot harder to work with.
downthewell62 t1_j9iebvq wrote
It also doesn't help that the government gave those massive internet cartels free money
IDK_PizzaBagel2 t1_j9ibh8q wrote
I mean, it's obviously a long-shot and has been for awhile. I even kept my previous modem just in case because I thought something like this would happen. Just saying it sucks 🤷🏻♀️
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