SpaceX Challenges Colorado’s Broadband Funding Plan
SpaceX is challenging Colorado’s plan to distribute $400 million in federal broadband funding, arguing that the state is prioritizing costly fiber projects over more affordable satellite alternatives like Starlink. The funding comes from the U.S. Broadband Equity, Access, and Deployment (BEAD) program, which aims to expand high-speed internet access in underserved rural areas.
In a letter to the Colorado Broadband Office, SpaceX criticized the proposal for allocating funds disproportionately to fiber installations that can cost more than $10,000 per location. The company pointed out that Colorado’s plan covers only 24% of locations at average costs exceeding $10,000, which is over seven times the amount offered by SpaceX. SpaceX is urging the National Telecommunications and Information Administration (NTIA) to carefully review Colorado’s proposal and reject unnecessary and wasteful spending.
Colorado has allocated about 48% of its broadband expansion plan for fiber, which provides gigabit speeds but is costly to deploy, especially in remote areas. Fiber awards represent the bulk of the state’s spending, while satellite providers were selected for roughly half of the underserved locations but have only been allocated $34.5 million of the $400 million budget. Amazon’s Project Kuiper received $25 million to cover over 42,000 locations, while Starlink was awarded just $9 million for 5,400 locations.
SpaceX argues that its Starlink service offers a more cost-effective solution, with bids averaging $1,700 per location compared to $10,000+ for fiber. Project Kuiper’s average cost per location is even lower at $600. This clash with Colorado is not the first time SpaceX has questioned a state’s broadband expansion plan. The company recently criticized Virginia’s $613 million BEAD plan for favoring fiber over satellite alternatives.
However, SpaceX recently secured a win in Montana, receiving $119 million in funding to connect 20,000 underserved locations with Starlink. The NTIA must approve Colorado’s proposal before the funds are distributed, and SpaceX is urging the agency to intervene due to unnecessary costs and delays associated with fiber deployment.
In conclusion, SpaceX is advocating for a more balanced approach to broadband funding that considers the cost-effectiveness and efficiency of satellite alternatives like Starlink. It remains to be seen how Colorado and other states will navigate the challenges of expanding high-speed internet access in rural areas while ensuring taxpayer money is used wisely.