A $42 billion federal broadband program is being revised, and Elon Musk’s Starlink may stand to gain the most. This shift raises concerns about putting rural Americans at a financial disadvantage.
Shifting Focus of the BEAD Program
The Trump administration is altering a $42 billion initiative called the Broadband Equity and Access Deployment Program (BEAD). Initially laid out to bring fast, consistent internet to every American home, the Biden administration favored fiber-optic lines. Although expensive to install, they are cost-effective in the long run. Now, lobbying from Elon Musk may give satellite internet services like Starlink a larger share of the funding.
Choosing Fiber Over Satellites
Various state and former federal officials, speaking to Bloomberg anonymously, argue that fiber remains more cost-effective, despite having higher initial installation costs. A state official provided data showing significant long-term costs associated with satellite services, which can be more than double the maintenance costs compared to fiber over 30 years. Critics of the changes worry about installing cheaper satellite services that may become costlier over time.
Opportunities and Challenges for Starlink
According to The Wall Street Journal, Starlink is set to receive $4.1 billion under existing Biden-era rules. If preferential shifts toward satellite proceed, that figure could rise to $10-20 billion. While this could boost Musk's space enterprise, questions remain about the system's ability to reliably provide fast, affordable internet nationwide.
The changes in the BEAD program spark active debate on the most effective way to deliver high-speed internet. While the new measures may offer short-term financial benefits, questions linger on the need for sustainable solutions that better serve American needs.
