Why Is Satellite Internet More Expensive than DSL?

Satellite vs. DSL – Explore which connection type you need.

Oliver Peck
Oliver Peck Broadband Boss
Last Updated 11 March 2025
Why Is Satellite Internet More Expensive than DSL

Living in the suburbs is all peace and calm until you need a fast internet connection. While the internet in the U.S. is reaching the sky, rural America seeks outer space for reliable connectivity.

Yes, you guessed it right. Satellite internet is one of the most popular internet connections for rural internet users. Not only is it widely available, but sometimes it is also the only option in the area.

The question that keeps coming up is why Satellite internet is so expensive in the U.S.? Does it make sense to pay hundreds of dollars for an internet service with comparatively slower speeds? Let’s find out.

What We Discovered

  • Satellite internet uses satellites in space to provide internet access on the ground.
  • Satellite internet offers comparatively slower speeds than DSL, cable, or fiber internet.
  • The cost of getting a satellite internet plan is higher than other connection types.
  • Satellite internet is available in nearly 100% of households in the U.S.

What is Satellite Internet?

Satellite internet provides an internet connection through satellites in space. Internet service providers send satellites up in space where they orbit the earth and provide internet access to their stations on the ground. Satellites in space transmit signals to the network provider’s station and from the station to your home.

When you get a satellite internet connection for your home, your network provider installs a satellite dish in your home. The dish is installed in a place free from obstructions like trees, walls, etc.

The advantage of satellite internet over any other internet connection available today is its wide availability. Due to this, satellite internet is one of the most popular internet options in rural areas where other internet connections are unavailable.

How Much Does Satellite Internet Cost?

Loosen up your wallets, because this is going to get serious. For its elaborate equipment and infrastructure, satellite internet has the most expensive per Mbps price. An average satellite internet plan costs around $100. Compared to DSL plans, this is more than twice the price you would pay for the same speed.

How is that justified? Well, satellite internet has an edge over any other connection type for its widest availability all across the U.S.

Why Is Satellite Internet More Expensive than DSL?

Despite its edge in availability, why is satellite internet more expensive than a DSL internet connection, which is also widely available? Here are a few factors to help you understand the difference between DSL and satellite internet.

Satellite vs. DSL – Infrastructure

Just as satellite internet uses satellites in space to send and receive signals to your home, DSL internet uses telephone lines. So, it goes without saying, the infrastructural cost that goes into providing satellite internet is a lot higher than DSL internet. Most cities, towns, and even rural areas have telephone lines that are used to provide a DSL connection. Hence, the price is lower as compared to satellite internet.

Satellite vs. DSL – Equipment

The second reason for the Satellite internet’s higher cost is the equipment cost. A DSL internet connection only requires a modem to convert the signals at home. On the other hand, for a satellite internet connection, you also need to install a satellite dish at home. This adds to your total cost. You will also need professionals to install a satellite dish at an optimal position free from any obstructions, which will also cost you more.

Satellite vs. DSL – Availability

As discussed before, satellite internet is available in nearly 100% of locations in the U.S. Any other connection type has not yet matched this level of availability. However, DSL comes second in terms of availability after satellite internet. DSL internet is available to 80% of households in the U.S. and is an ideal option for users in rural areas.

Top Satellite Internet Providers in U.S

Provider Download Speeds Data Caps Starting Price
hughesnet logo Up to 50 Mbps Unlimited standard data / 100 GB priority data Call for pricing
viasat logo 25 – 150 Mbps 12 – 150 GB Call for pricing

Is Satellite Internet Worth It?

While satellite internet technology has developed over the years, and is a lot more reliable than it used to be, other connection types have advanced at a much higher rate. The speed, reliability, and price you get on a cable or fiber plan cannot match the power of a DSL or satellite internet connection.

Let’s face it, satellite internet is usually the first priority only for users who have no other options. With slower speeds and limited data usage, it is surely not the ideal choice for users who need the internet for extensive usage. Unless you live in an area, where there is no availability of DSL, cable, or fiber internet, satellite internet is really worth it!

Frequently Asked Questions

Satellite internet is a good option for users in rural areas where other connection types are not available.

Light weather changes like fog, light rain, or a cloudy sky will not hurt a satellite internet connection; however, heavy changes like thunderstorms, lightning, or snowstorms may affect its performance.

Satellite internet transmits signals through a satellite that orbits the earth, whereas wireless internet is sourced from the internet provider’s network towers located on the ground. Both services provide internet to users, however, their methods and means make a difference in the quality of service and performance.

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