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4w ago

U.S. Broadband Program Overhauled to Favor Elon Musk’s Starlink

Commerce Secretary Howard Lutnick directs rural broadband funds toward satellite internet, sidelining fiber-optic projects and raising concerns over service quality and job losses.

A Starlink terminal provides broadband satellite internet access in a remote location in Oahu, Hawaii, July 22, 2024. (Photo by Smith Collection/Gado/Getty Images)
A Starlink on the roof of a home. MUST CREDIT: Cate Dingley/Bloomberg
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Overview

  • The BEAD Program, originally designed to prioritize fiber-optic broadband for rural areas, has been restructured under the Trump administration to favor satellite internet providers like Starlink.
  • Commerce Secretary Howard Lutnick explicitly endorsed Starlink, citing a shift to a 'technology-neutral' approach, despite concerns over the long-term reliability of satellite internet compared to fiber-optic broadband.
  • Former BEAD Program director Evan Feinman resigned in protest, warning that the changes will leave rural communities with inferior internet service and fewer economic opportunities.
  • Critics argue the policy shift will divert billions in public subsidies to Elon Musk's Starlink, undermining the program's original goals of creating union jobs and sustainable infrastructure.
  • The program's overhaul has stalled fiber-optic projects in several states, with labor advocates and rural development experts voicing strong opposition to the new direction.