US Department of Commerce Overhauls Broadband Equity Program to Benefit Starlink
- The US Department of Commerce has overhauled the Broadband Equity, Access, and Deployment (BEAD) program
- The program will no longer prefer fiber-optic broadband
- A tech-neutral approach will be taken to provide internet access at the lowest cost
- Elon Musk's Starlink is likely to benefit from the changes
- Starlink was previously rejected by the FCC for nearly $900 million in subsidies
Background
The BEAD program was originally designed to provide states with funding for fiber-optic cable installation, increase Wi-Fi networks, and offer free broadband internet access to certain individuals. However, the new mandate removes the preference for fiber-optic broadband, which provides the fastest internet speeds.
The Department of Commerce claims that this change will allow states to provide internet access at the lowest cost, driven by outcomes rather than specific technologies. US Secretary of Commerce Howard Lutnick stated that the Department is "ripping out the Biden Administration's pointless requirements" and revamping the program to take a tech-neutral approach.
Implications for Starlink
Elon Musk's Starlink is likely to benefit from these changes, as it will now have a better chance of receiving funding from the BEAD program. In 2023, Starlink was rejected by the Federal Communications Commission (FCC) for nearly $900 million in subsidies due to failing to meet the program's requirements.
The writing on the wall is clear: Musk, the richest person in the world and a key figure in the Trump administration, is about to make even more money. The overhaul of the BEAD program has sparked controversy, with some critics arguing that it will only serve to further enrich Musk and his company.