NTIA seems to clarify that SpaceX can't flout BEAD rules

The National Telecommunications and Information Administration released new guidance this week that seems to clarify that companies receiving Broadband Equity Access and Deployment (BEAD) Program awards cannot retroactively absolve themselves of certain program requirements. The clarification comes after a leaked rider that SpaceX reportedly sent to at least one state revealed that the company was attempting to circumvent certain capacity and performance requirements. SpaceX – which operates the low-Earth orbit (LEO) satellite service Starlink – sought to absolve the company of certain requirements it agreed to during the BEAD bidding process. Those include, among others, that Starlink's quality of service is not guaranteed if Starlink determines the customer's "view of the sky is obstructed." The rider also states that Starlink will offer free customer premises equipment (CPE) but not installation. NTIA appeared to clarify that such modifications to BEAD agreements are not allowed. "May Eligible Entities and BEAD subgrantees negotiate a subgrant agreement that is inconsistent with program rules? No. Every subgrant agreement must comply with all BEAD program requirements, including, but not limited to, the requirements outlined in the BEAD NOFO, the BEAD Restructuring Policy Notice, and the BEAD General Terms and Conditions. Federal law, regulations, and program rules will always govern in the event of a conflict with a BEAD subgrant agreement term," states the FAQ guidance. Without referencing SpaceX, the NTIA guidance appears to directly address some of the requests being made by the company and advises caution by the states and territories ("eligible entities") when reviewing such contracts: "NTIA will not require Eligible Entities to agree to any contractual proposals from a subgrantee and advises Eligible Entities to carefully consider any proposal from a subgrantee that seeks to limit the Eligible Entity’s discretionary authority," the guidance states.