What's Happening?
SpaceX has been awarded $108.8 million in BEAD funding by the state of Texas to expand broadband services using its Starlink low-Earth orbit satellite technology. This funding will enable SpaceX to reach
63,963 broadband serviceable locations across Texas, making it the largest ISP winner by number of locations in the state. The BEAD program, which aims to improve broadband access, allocated a total of $1.3 billion out of an initial $3.3 billion budget for Texas. Fiber providers received the majority of the funding, covering 51% of locations, while SpaceX's satellite service will cover 27% of locations.
Why It's Important?
The allocation of BEAD funding to SpaceX highlights the growing importance of satellite technology in bridging the digital divide, especially in rural and underserved areas. By securing a significant portion of the funding, SpaceX is positioned to expand its Starlink service, potentially increasing internet access for thousands of Texans. This move also reflects a shift in preference towards satellite solutions in areas where traditional fiber infrastructure may be less feasible. The decision could influence future broadband funding allocations and technology choices across other states.
What's Next?
Texas has opened its final BEAD proposal for public comment, with the deadline set for October 20. The state is awaiting guidance from the NTIA on whether remaining funds can be used for non-deployment activities, such as broadband adoption efforts. This decision could impact how Texas and other states utilize their leftover BEAD funds. Additionally, other states, including California, are expected to announce their BEAD results soon, which may further shape the national broadband landscape.
Beyond the Headlines
The BEAD funding allocation raises questions about the long-term sustainability and effectiveness of satellite broadband solutions compared to fiber. While satellite technology offers rapid deployment and wide coverage, concerns about latency and reliability persist. The decision also underscores the need for clear federal guidelines on the use of BEAD funds for non-deployment activities, which could enhance broadband adoption and digital literacy.
