Blair Levin Slams BEAD Satellite Funding Rules: What the States Are Planning

In a research note benignly titled “BEAD Update,” New Street Research's Blair Levin offers numerous reasons why diverting more Broadband Equity, Access, and Deployment (BEAD) Program funding to satellite is a bad idea. He has also kept his ear to the ground, gathering a wide range of information about how states are responding to changes made to the BEAD program in June 2025. “From a state perspective, it is not clear what the states providing funds to satellite will actually gain, as their residents already have access to satellite broadband,” wrote Levin. BEAD grants to satellite providers will include a capacity reservation aimed at ensuring that funded locations will be served. But, according to Levin, satellite providers have suggested to some states that they will achieve this by raising rates to levels that limit the number of users. Although BEAD grants will require satellite providers to offer equipment for free, BEAD rules don’t limit what the providers can charge for service, Levin noted. “The combination of no rate regulation and being the monopoly providers means that as a practical matter, ‘free’ will result in higher prices,” he added. “With no requirements for lower pricing, why would anyone who is not currently buying satellite service choose to buy it in the future just because the government subsidized Starlink and/or Kuiper?”