Rural Internet Is Still So Bad, Some States Are Turning to Outer Space

A growing number of states are rolling out subsidies for satellite connectivity in rural areas, a change that could be a boon to Elon Musk’s Starlink and Amazon's Kuiper. From Maine to Nevada, states are starting to help some of the 24 million Americans who lack reliable broadband pay for satellite internet, rather than focusing such aid primarily on fiber connectivity as they have in the past. Fiber-optic cables provide the most reliable internet service and the most durable infrastructure, but are costly to install. For remote addresses, the cost of laying fiber to a single home can potentially top six figures. Some government officials have been reluctant to subsidize satellite internet because it provides slower service than fiber, suffers more frequent outages, and relies on satellites that need replacing every few years. Still, providing it can take less time and cost less than running fiber. SpaceX’s Starlink internet business has demonstrated the power of using large numbers of satellites in low-Earth orbit to provide fast connections to users on the ground. Many traditional satellite-internet providers are ineligible for some government subsidies because their service doesn’t meet the standards. Louisiana set aside $28.7 million of the funds it expects from the Broadband Equity, Access and Deployment (BEAD) Program for satellite service, and Nevada has agreed to spend $12.7 million of its BEAD funds on Project Kuiper to serve about 4,400 rural addresses.