Starry

Market position

Starry is a challenger internet service provider targeting markets where consumers are described as having limited provider choice; TechCrunch framed it within "the never-ending quest to kill Comcast." It competes against fiber and cable incumbents using a wireless delivery model, and by 2019 had raised over $160 million and was reported to be seeking a raise implying a post-money valuation of up to $870 million.

Starry positions itself against incumbent cable and fiber providers on three axes: technology, pricing transparency and service. Its wireless delivery avoids the cost and disruption of trenching fiber, which the company says allows lower prices; its plans carry no bundles, no long-term contracts, no hidden or installation fees, a three-year price lock and an included router; and it emphasizes customer support with 24/7 availability, up-to-same-day installation and a 30-day money-back guarantee. TechCrunch noted skepticism about the approach, as high-frequency radio signals can be affected by harsh weather and physical obstacles, though the company said it was satisfied with performance in less-than-ideal conditions after a full year of seasonal testing in Boston.

Technology

Starry uses next-generation fixed wireless technology described as gigabit-capable. Radio tower and high-rise-mounted transmitters broadcast millimeter wavelength signals to receivers that connect to a building's existing wiring, eliminating the need to trench fiber to each premises. The network is stated to deliver speeds up to 1 Gbps and 99.9% reliability, with upload speeds up to 50 Mbps standard (doubling with Upload Boost) and up to 250 Mbps in select locations. Earlier coverage described a touchscreen router for setup, customer service contact, parental controls and speed tests.

Go-to-market

Starry acquires customers through online self-service: prospective subscribers enter a building address on the website to check availability, with easy online signup and up-to-same-day installation in certain areas. It markets both to multi-dwelling buildings through a real estate partner program and to single-family homes. Promotional levers include new-customer pricing, a three-year price lock, up to $200 in account credits to cover a prior provider's early termination fees, and a 30-day money-back guarantee. Customer reviews are prominently featured on the site.

Residential internet subscribers in its five metro markets, spanning single-family homes and multi-dwelling buildings from low-rise homes to high-rises. It also targets real estate owners and operators as channel partners, and, through the Starry Connect program, families in affordable housing.

Geography

United States only, with service available in Boston, Denver, Los Angeles, New York City and Washington, DC. Boston was the original home market; the other four markets were added during a 2018 expansion. The company has been described as Boston-based and, in earlier coverage, as Boston- and New York City-based.

History

Chet Kanojia co-founded Starry, described in early 2016 as a Boston- and New York City-based startup making Wi-Fi products and internet service. The company built its initial network in Boston, where its CEO said it had run through a full year of seasonality testing weather and foliage conditions. In 2018 it expanded beyond Boston into Los Angeles, New York City, Denver and Washington, DC, and completed a $100 million funding round reported that July. In April 2019 a Delaware stock authorization filing showed it had filed to raise up to $125 million in Series D funding, at which point it had raised over $160 million from investors including FirstMark Capital and IAC. As of the company's current website, service remains offered in Boston, Denver, Los Angeles, New York City and Washington, DC.

Risks & controversies

Coverage has noted technical skepticism about the fixed wireless approach: high-frequency millimeter wave signals can be degraded by harsh weather and physical obstructions, in contrast with fiber. Reported funding figures have also been contested — Starry confirmed raising new capital in 2019 but disputed the amounts derived from the Delaware stock authorization filing. Founder Chet Kanojia's prior company Aereo was shut down as a result of a Supreme Court case brought by major broadcasters.