Concerns are mounting regarding Starlink's capacity to meet the increasing demand for internet service, as it has consistently failed to achieve the FCC's broadband speed benchmarks of 100 Mbps download and 20 Mbps upload.

According to Ookla's 2023 data, Starlink users in the United States averaged speeds of only 65 Mbps for downloads and 10 Mbps for uploads, with a latency of 58 milliseconds, which falls short of the FCC's standards.

Despite these speed issues, Starlink has successfully connected many households in previously underserved areas, particularly benefiting rural residents.

As of August 2024, Starlink reported approximately 1.4 million subscribers in the U.S., representing about 1% of the country's total internet connections.

Starlink's global user base saw significant growth in 2024, nearly doubling from 2.3 million at the beginning of the year to 4.6 million by December 31.

In response to rising demand, Starlink implemented a waitlist for new subscribers in major U.S. cities like Seattle and Austin in November 2024, along with a $100 congestion fee for high-usage areas.

Starlink faced significant setbacks in 2022 when it was denied nearly $900 million in broadband grants from the Rural Digital Opportunity Fund due to its failure to meet FCC speed requirements.

Historically, Starlink's best performance occurred in the last quarter of 2021, when it achieved speeds of 105 Mbps download and 12 Mbps upload, but it has never consistently met FCC standards since its launch.

Elon Musk has publicly disputed claims regarding Starlink's speed shortcomings, asserting that the service currently exceeds the required speeds as of January 2024.

FCC Chair Brendan Carr has expressed skepticism about revisiting RDOF subsidies for Starlink, although he acknowledged the potential for the service to be included in future broadband programs.

Starlink's service has been particularly beneficial for rural residents, many of whom have struggled to find reliable internet access.

Despite its growth and the benefits it provides, Starlink's ongoing challenges with speed performance continue to raise questions about its long-term viability in the broadband market.