SpaceX’s Starlink has recently been selected to receive $51.6 million in federal subsidies to help expand high-speed internet access in Ohio. This initiative comes as part of Ohio’s Broadband Equity, Access, and Deployment (BEAD) program, with Starlink set to serve 31,000 underserved locations in the state.
In Ohio’s BEAD proposal, Starlink was chosen to cover 41% of all eligible locations, a higher percentage than any other internet service provider participating in the program. Spectrum, owned by Charter Communications, came in second with just 13% coverage.
This marks the second-largest BEAD allocation that Starlink has received, following a recent $119 million award from Montana to serve 20,000 locations. Meanwhile, Colorado also showed interest in satellite internet over fiber, but leaned more towards Amazon’s Starlink competitor, Project Kuiper.
Originally, the BEAD program was geared towards prioritizing fiber deployments. However, changes made under the Trump administration shifted the focus to “technology neutrality” and lower-cost rollouts, opening the door for satellite services like Starlink, which are more cost-effective and quicker to deploy in rural areas.
Ohio was granted $793 million in BEAD funding, but officials state that only $227 million is needed to meet deployment goals. With Ohio emphasizing cost efficiency, Starlink had a competitive edge due to its ability to offer near-immediate coverage compared to the time-consuming and expensive process of laying fiber.
Despite the advantages in deployment speed and cost, there are trade-offs in performance. Starlink is only required to deliver 100Mbps download and 20Mbps upload speeds under the BEAD program, whereas fiber providers like Spectrum and AT&T plan to offer gigabit service. While Starlink will provide free hardware to eligible locations, there is no obligation to discount monthly subscriptions. However, the company is currently offering discounted Residential plans in eligible states and 50% off its Standard dish across the U.S.
SpaceX has faced criticism but remains committed to improving Starlink’s speeds to gigabit levels. The company has also challenged BEAD awards in states like Virginia and Louisiana, arguing that Starlink was unfairly excluded from consideration. SpaceX has even requested intervention from the Commerce Department, which must approve each state’s proposal before releasing any funding.
Overall, Starlink’s selection for the Ohio BEAD program highlights the growing importance of satellite internet in expanding access to high-speed connectivity, particularly in underserved rural areas. The company’s ongoing efforts to enhance performance and affordability demonstrate its commitment to bridging the digital divide and bringing reliable internet access to more communities.