Starlink Demands Less Oversight As It Receives Hundreds Of Millions In New Subsidies
Elon Musk’s Starlink is making new demands of states with an eye on eroding accountability and oversight, reheating concerns about whether spending big money on the Low Earth Orbit (LEO) network is the best possible use of taxpayer resources.
Last year, the Trump administration made revisions to NTIA rules surrounding the $42.5 billion Broadband, Equity, Access, And Deployment (BEAD) program, demanding that states de-prioritize fiber and dole out significantly more money to LEO satellite providers – a move broadly seen as a personal gift to one of the President’s biggest financial donors.
This subsidy reward, slated to be at least $733 million to start, is money that in some cases is being redirected away from higher-capacity, more affordable local options like open access community-owned fiber networks.
The NTIA changes introduced significant new delays in a program already rife with them. The Trump administration’s threat to withhold grant awards from states that focus on affordability – and the high consumer costs, environmental impact, and capacity constraints of the LEO network – risks undermining BEAD’s promise of faster, more affordable access.
Standoff Orbits 'LEO participation'
Last week, Broadband.io and the Benton Institute for Broadband & Society obtained a copy of a letter Starlink parent company SpaceX sent to individual states, demanding freedom from state oversight and monitoring should they bungle installs or fail to deliver acceptable bandwidth.
