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Commerce Department Revises Broadband Program, Shifts Focus to Cost-Effective Solutions

The $42.5 billion BEAD program will adopt a technology-neutral approach, potentially increasing satellite internet projects like Elon Musk's Starlink.

A Starlink satellite on the roof of a home in Galisteo, New Mexico, US, on Monday, March 18, 2024. Starlink is a satellite-based internet provider owned by SpaceX.
Commerce Secretary Howard Lutnick, left, accompanied by Taiwan Semiconductor Manufacturing Company CEO C.C. Wei, speaks as he joins President Donald Trump in the Roosevelt Room of the White House on March 3, 2025 in Washington, D.C. (Andrew Harnik / Getty Images)

Overview

  • The U.S. Department of Commerce has announced significant changes to the Broadband Equity, Access, and Deployment (BEAD) program, removing Biden-era mandates prioritizing fiber-optic technology.
  • Commerce Secretary Howard Lutnick stated the program will now focus on providing internet access at the lowest cost, emphasizing a technology-neutral approach.
  • Critics argue the shift could favor satellite services like Elon Musk's Starlink and result in lower-quality, higher-cost solutions for consumers over time compared to fiber-optic broadband.
  • Supporters of the changes believe they will streamline deployment, reduce regulatory delays, and expand internet access to underserved areas more quickly.
  • States like Louisiana, Nevada, and Delaware, which had planned extensive fiber rollouts, may face delays as they adjust their grant programs to align with the new guidelines.