Low Earth Orbit (LEO) satellite internet service providers (ISP), like Starlink and (eventually) Amazon’s Kuiper, are poised to win big in the restructured Broadband Equity Access and Deployment Program (BEAD). That’s because the National Telecommunications and Information Administration’s (NTIA) new policy notice, released June 6, makes two major changes that benefit LEO technologies. Specifically, the policy notice:

1. Removes BEAD’s preference for end-to-end fiber networks;
2. Directs states to give preference to ISP's that request the least amount of BEAD funding in their bids.

LEO (and fixed wireless) networks are less expensive to build than wired networks like fiber, cable, or DSL, so these changes effectively give Starlink (and Kuiper) a major advantage in the BEAD bidding process. However, just days after the policy notice was released, a report from Ookla found that only 17.4 percent of U.S. Starlink users receive service that meets BEAD’s minimum speed requirements 100/20 Mbps). This raises questions about LEO's ability to fully participate in BEAD.

In any event, LEO providers will need to submit applications that request less support than their competitors. So, what do we know about LEO bids?

Here’s What We Know About LEO Bids

Starlink Bids

Starlink is the name of a satellite network developed by the private spaceflight company SpaceX, which is primarily owned by Elon Musk. As of May. 30, 2025, there were 7,578 Starlink satellites in orbit, of which 7,556 were working, according to Astronomer Jonathan McDowell.

To our knowledge, there is no public data on Starlink’s actual BEAD bids to date. However, we can draw inferences from other programs and state reports:

• Starlink won 642,925 locations with an average bid of $1,667 per location (adjusted for inflation) in the Federal Communications Commission’s (FCC) 2020 Rural Digital Opportunity Fund Program (RDOF).¹
• Starlink said it would bid between $3,750 to $5,000 per location in Washington State’s BEAD program.² 
• Maine’s “Working Internet ASAP” program offers Starlink to 8,800 locations. Consumers participating in the program receive a free dish and installation but must pay the $120 month subscription cost themselves (or $80 a month for the slower “lite” service). Yet, within five months, only 4 percent of qualifying locations had enolled despite the state’s extensive outreach efforts.³
• According to a Telecompetitor review of state BEAD programs, Starlink was poised to participate in 15 of the 19 states examined.
• Starlink has a $500 congestion fee in the Pacific Northwest and does not offer its “free dish with a 12-month subscription” deal in the Southeast, Appalachia, Great Lakes, and Pacific Northwest regions. Starlink's apparent deprioritizing of customer acquisition in these areas may reflect that the company’s satellite infrastructure has reached its capacity in these regions.

Kuiper Bids

Project Kuiper is Amazon’s low Earth orbit satellite network. The company’s initial satellite constellation, which is being deployed in 2025, will eventually include more than 3,200 spacecraft. Currently, Kuiper has fewer than 30 satellites deployed.

• Kuiper submitted winning bids to serve 4,891 locations in Nevada for an average cost of $2,962 per location in the state’s BEAD program. 
• Kuiper bid an average of $3,000 per location in Tennessee’s BEAD program. (Tennessee's map allows for interesting comparisons among other bidders and technologies.)
• An “alternative technology” (possibly Kuiper) submitting winning bids to serve 2,869 locations in Louisiana with an average bid of $10,000 per location. However, the selection was pending final negotiations between the state and the provider.

Factors LEO Providers Must Consider When Bidding

As with other types of ISPs, LEO providers must offer service within four years of winning a BEAD grant. Additionally, they must maintain certain service quality standards for ten years once they begin offering service (i.e., the “period of performance"). 

NTIA’s policy notice outlines unique requirements for LEO applicants:

• LEO providers must offer locations free equipment (i.e. satellite receiver, router, etc.) for the entire 10-year performance period. If residents move, the provider must offer new residents free equipment.
• LEO bids must “reserve capacity” in the satellite network system to ensure locations receive the level of service required by BEAD. At this time, it is not clear exactly what “reserving capacity” entails. 
• LEO providers may be reimbursed in two ways:
  • In equal installments throughout the period of performance. 
  • Through reimbursements based on the number of subscribers the provider serves and/or enrolls (e.g., a state may reimburse the provider once 50% of locations in a defined service area subscribe to the LEO provider’s service). 
• LEO subgrantees can eliminate the value of their letter of credit over time by meeting deployment and take-rate milestones. The letter of credit is a financial tool to ensure the grant winner has sufficient access to funding to fulfill its grant obligations.

As the BEAD Program shifts its focus from deploying high-quality infrastructure to low-cost infrastructure, LEO providers, like Starlink and Kuiper, are well-positioned to submit competitive bids. Their comparatively low per-location costs give them an edge in the bidding process—even as questions remain about their ability to meet BEAD’s service standards. Ultimately, whether these technologies can deliver on BEAD’s promise of reliable, affordable, high-quality, high-speed internet access for all will depend not only on how states evaluate bids today but also on how they ensure compliance in the future.

Notes:

1. Starlink’s RDOF participation was later disallowed by the FCC because the technology did not meet program performance requirements.
2. This does not reflect an actual competitive bid. This estimate may be on the high end, since Starlink appears to have limited capacity in Washington State based on its $500 congestion surcharge in the Pacific Northwest.
3. Data shared by the Maine Connectivity Authority.
4. The policy notice reads: “Because of the nature of LEO service, [states] cannot identify a portion of the LEO network that is dedicated to certain locations in their jurisdiction. Therefore, NTIA will not take Federal interest in equipment or property acquired or improved with a LEO Capacity Subgrant.”
5. Other technology types can also have their letters of credit’s value reduced during deployment and periods of performance, but specific terms and rates are for each state to determine.
   

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   Reid Sharkey is a Community Broadband Specialist & Research Associate at the Benton Institute for Broadband & Society. Drew Garner is the Director of Policy Engagement at the Benton Institute for Broadband & Society.

The Benton Institute for Broadband & Society is a non-profit organization dedicated to ensuring that all people in the U.S. have access to competitive, High-Performance Broadband regardless of where they live or who they are. We believe communication policy - rooted in the values of access, equity, and diversity - has the power to deliver new opportunities and strengthen communities.

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