Particle.news

Download on the App Store

Rule Changes to $42B Broadband Program May Boost Starlink Funding

The U.S. Commerce Department has removed fiber-optic preferences from the BEAD program, opening opportunities for satellite providers like 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 Broadband Equity, Access, and Deployment (BEAD) program, created in 2021, has been overhauled to take a 'technology-neutral' approach to internet expansion.
  • The changes remove a previous preference for fiber-optic infrastructure, potentially allowing satellite providers such as Starlink to secure a larger share of the $42.5 billion in funding.
  • Critics argue the shift could result in slower, less reliable, and more expensive broadband options for consumers compared to fiber-optic services.
  • Supporters of the overhaul, including Commerce Secretary Howard Lutnick, claim it will reduce costs and accelerate deployment to underserved areas by cutting 'burdensome' regulations.
  • Some analysts warn the changes could delay implementation as states may need to revise grant plans, with concerns about long-term costs and service quality for satellite-based solutions.