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The United States (US) administration’s recent release of new rules for distributing $42.5 billion in US rural broadband funding has opened the door wider for Starlink and other satellite providers. The Department of Commerce’s National Telecommunications and Information Administration (NTIA) announced a technology-neutral approach in awarding subgrants under the Broadband Equity, Access, and Deployment (BEAD) program.
This development could be a significant win for SpaceX’s Starlink, which has been vying for rural broadband subsidies. Starlink was provisionally awarded nearly $900 million in subsidies in 2020 under the Rural Digital Opportunity Fund (RDOF) program but was denied due to failure to demonstrate meeting requirements. The new rules might give Starlink another chance.
Space industry analyst Armand Musey notes that the tech-neutrality reform provision should help Starlink, but it’s unclear how eagerly it will be adopted at the state and local level, where fiber often has an advantage due to job creation potential.
*Key Changes in BEAD Rules*
– *Technology Neutrality*: NTIA will now apply a technology-neutral approach in awarding subgrants.
– *Streamlined Environmental Reviews*: New rules aim to simplify environmental reviews.
– *Removed Regulatory Barriers*: Workforce mandates and other regulatory barriers have been removed.
The outcome of this policy shift remains to be seen, but it could potentially boost Starlink’s chances of securing funding and expanding its rural broadband services .
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