Satellite

The future of America’s broadband is at a crossroads. Commerce Secretary Lutnick recently stated that the Broadband Equity, Access, and Deployment (BEAD) program is in “dire need of a readjustment.” With his call for a “tech-neutral” approach, all signs point to a shift away from fiber and towards satellite.

For many years, the satellite industry faced a PR challenge: being out of sight and, therefore, out of mind. That's the case with geostationary orbit satellites, which fly some 36,000 km (22,000 miles) above a designated spot on the equator. The debut of SpaceX's Starlink low-earth orbit satellite broadband service in 2020 began shifting that perception. Starlink's launch has impacted more than industry PR.

The Trump administration will overhaul a $42 billion federal grant program aimed at expanding high-speed internet to the nation, including easing some rules that could benefit Elon Musk’s satellite internet service, Starlink. The program will be revamped to “take a tech-neutral approach” in its distribution of funds to states, Commerce Secretary Howard Lutnick said.

Commerce Secretary Howard Lutnick announced that his department is “ripping out” the “pointless requirements” inserted by former President Joe Biden into a major broadband program that is set to deliver high-speed internet to millions of Americans. Some broadband analysts have shared Lutnick’s frustration with the requirements in BEAD, which has been in planning and contracting for three years.

SpaceX’s Starlink is dipping its toes into the affordable broadband market, with the launch of its “Residential Lite” service in 15 U.S. states. While it’s cheaper than Starlink’s standard residential plan, the move is hardly a gamechanger for rural broadband connectivity.

It looks like Elon Musk’s Starlink service is going to get a big boost from the U.S. government. States will be able to award more Broadband Equity, Access and Deployment (BEAD) Program funds to satellite-internet providers like Starlink, as well as to more fixed wireless access (FWA) providers, rather than mainly to companies that lay fiber-optic cables. Personally, I think it will be a shame to squander this once-in-a-lifetime opportunity to reach as many homes as possible with fiber via the $42.5 billion in BEAD funds.

The Commerce Department is examining changes to the $42.5 billion Broadband Equity, Access and Deployment Program aimed at expanding internet access around the country with new rules that will make it easier for Starlink, Elon Musk’s satellite-internet service, to tap in to rural broadband funding, said people familiar with the plans. Commerce Secretary Howard Lutnick has told staff he plans to make the grant program “technology-neutral,” the people said.

U.S. Transportation Secretary Sean Duffy said the federal government would take steps to hire more air-traffic controllers and spend billions of dollars to upgrade the nation’s aviation system. Duffy said he would ask Congress to fund upgrades to the technology underpinning the nation’s air-traffic control system, pointing to its reliance on decades-old copper wire, floppy disks and phone jacks. Duffy said he hadn’t made a decision about whether to use the Starlink satellite communications system to improve air-traffic-control technology.

When President Joe Biden put $42 billion behind making high-speed internet accessible across the US, he committed to doing it the old-fashioned way—with miles upon miles of fiber-optic lines. That frustrated Elon Musk, who said his Starlink satellite-internet business could get rural areas online faster, at lower cost.

In a 2024 end-of-year memo, Gary Bolton of the Fiber Broadband Association said that FBA had partnered with the consulting firm Cartesian to look at the pros and cons of Starlink in the U.S. FBA says that report shows that Starlink currently has 1.4 million customers in the U.S., and with the current satellite constellation has the capacity to serve 1.7 million customers. The implied conclusion of the report is that Starlink can’t serve everybody in rural America.