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Starlink Challenges State BEAD Plans in Virginia and Louisiana, Presses for Bigger Satellite Share

The filings arrive as federal guidance shifts to a technology‑neutral model that curtails state affordability mandates.

SpaceX’s Starship rocket, gearing up for its 10th flight test as soon as Aug. 24, is instrumental to the company’s plans to upgrade Starlink with greater capacity and eventual gigabit speeds.
SpaceX accuses state governments of wasting taxpayer money by prioritizing fiber internet projects over Starlink.
Elon Musk, wearing a baseball cap with the word DOGE, stands with while crossing his arms.

Overview

  • SpaceX asked federal reviewers to reject Virginia’s fiber‑heavy proposal, calling it a “massive waste of federal taxpayer money” and urging more satellite allocations.
  • In an Aug. 15 filing to Louisiana, the company criticized a $400 million fiber plan versus $7.7 million for Starlink and claimed it could serve virtually all remaining households for under $100 million.
  • The National Telecommunications and Information Administration updated BEAD guidance to remove prior fiber‑first preferences and warned states they could lose funds if they set base price requirements for low‑income plans.
  • Rural broadband advocates argue Low Earth Orbit satellites face capacity, spectrum and reliability limits and cannot match fiber’s gigabit speeds for universal service.
  • The $42.5 billion BEAD program has been slowed as states rework plans under the new rules, adding uncertainty to deployment timelines.