is making changes to a $42 billion broadband subsidy program that will benefit satellite internet providers like ’s Starlink, but some state and federal officials worry the technology isn’t robust enough to connect Americans on a mass scale and at affordable rates.
The Trump administrationElon MuskThe Biden administration’s vision for the Broadband Equity and Access Deployment Program (BEAD), designed to deliver fast, reliable home internet service to every US household, leaned heavily on fiber-optic lines, a technology that’s expensive to install but can last for decades. The shift toward satellites is a result of extensive lobbying by Musk and has gained Republican support, including from Senate Commerce Committee Chairman Ted Cruz.
State and former federal officials, several of whom spoke to Bloomberg on the condition of anonymity, described pitfalls with Commerce Secretary Howard Lutnick’s new approach, which gives more opportunities for satellite terminals that are initially inexpensive, but can cost more over time. One state official shared internal data that showed satellite service costs consumers 53% more over the course of 30 years. Satellite service would also cost more than twice as much to maintain over that time frame, according the data.
“There does not seem to be a clear understanding of the difference in these technologies, nor in the long-term impacts of making one choice versus another,” said Evan Feinman, the former director of the broadband program under Biden, who left the Commerce Department this month.
Lutnick said recently that he was reviewing the BEAD program, which was approved by Congress in 2021, due to the previous administration’s “favoritism towards certain technologies.” Lutnick’s department, which also cited a lack of progress in rolling out the service, is revamping the initiative to give it a more “tech neutral approach” that will deliver internet access “at the lowest cost to taxpayers,” according to a statement from his office.
