SpaceX’s Starlink is set to receive more than $300 million in federal funding to expand broadband access across underserved areas in the U.S., according to a report from PCMag.
The $42.5 billion Broadband Equity, Access, and Deployment (BEAD) program has received proposals from 36 states and U.S. territories. Starlink is poised to secure at least $302 million to serve over 205,000 locations, including in Guam and American Samoa.
Amazon’s Project Kuiper is also set to receive around $124 million to cover more than 200,000 locations. However, fiber buildouts continue to receive the majority of BEAD funding, accounting for about 64% of all locations. Satellite internet represents just 20%, with the remaining funds going towards fixed wireless installations.
In a noteworthy correction, Montana’s Starlink funding has been clarified to be $33.7 million for approximately 20,000 locations, making it the fourth-highest BEAD allocation so far. This update follows previous reports of higher funding amounts in various states like Ohio, Washington, and Wisconsin.
Starlink’s per-location funding averages around $1,470, significantly lower than the cost of fiber deployments in remote areas. SpaceX asserts that it can provide service faster and at a lower cost than fiber, with plans for future upgrades to deliver gigabit speeds to Starlink users.
Despite the benefits touted by SpaceX, the revised BEAD framework has faced criticism. Some argue that fiber offers faster and more reliable gigabit service compared to satellite internet. SpaceX has also faced accusations of lobbying to secure a larger portion of federal funding.
SpaceX is currently challenging broadband funding plans in states like Louisiana, Virginia, and Colorado, accusing them of favoring expensive fiber builds over satellite internet. The company has requested intervention from the National Telecommunications and Information Administration (NTIA) to revise these plans, calling out Virginia’s $613 million BEAD proposal as a “massive waste of federal taxpayer money.”
Under the BEAD program, both Starlink and Kuiper are required to provide free dishes at subsidized locations and reserve network capacity. However, the cost of monthly service for BEAD-eligible customers remains unclear.