SpaceX Urges States to Fund Starlink Over Fiber Broadband
ā¼ Summary
– SpaceX is opposing state broadband expansion plans, having challenged Virginia and now Louisiana for favoring fiber over its Starlink satellite service.
– The company alleges Louisianaās proposal allocates 91.5% of funds to fiber providers, influenced by lobbyists seeking personal benefit from taxpayer spending.
– The Trump administration revised BEAD program rules to be tech-neutral and cost-focused, which SpaceX claims Louisiana and Virginia are violating.
– SpaceX argues it could serve nearly all BEAD-eligible households in Louisiana for under $100 million, calling the stateās $499 million plan wasteful.
– Louisiana awarded SpaceX only $7.75 million for 10,327 locations, while giving fiber projects an average of $4,449 per location, which SpaceX deems non-competitive and non-compliant.
SpaceX is actively challenging state broadband expansion strategies, arguing that fiber-optic networks receive disproportionate public funding while more cost-effective satellite alternatives like Starlink are overlooked. The company recently urged Louisiana officials to reconsider how they allocate millions in federal broadband subsidies, claiming the current approach favors traditional infrastructure despite higher expenses and slower deployment timelines.
In a formal submission to the Louisiana Office of Broadband Development and Connectivity, SpaceX criticized the stateās proposal to direct over 90% of its BEAD program funding toward fiber projects. The company accused Louisiana of bending to pressure from fiber industry lobbyists and ignoring federal guidelines promoting technology-neutral solutions. Under revised Trump-era rules, states must evaluate all types of internet technology equally, rather than defaulting to fiber, even though it often delivers superior speed and reliability.
SpaceX emphasized that it could connect nearly all eligible households in Louisiana for under $100 million, a fraction of the stateās planned $500 million expenditure. Instead, Louisiana awarded SpaceX only $7.75 million to serve around 10,000 locations, while granting hundreds of millions to fiber consortiums. One group, the Louisiana Local Fiber Consortium, which includes T-Mobile partners, received $378 million alone.
The company contends that this allocation violates both the spirit and letter of federal rules, which require states to choose the most affordable option per location. SpaceXās satellite-based bids came in at roughly $750 per location, compared to an average of nearly $4,500 for fiber installations. By dismissing lower-cost satellite proposals, SpaceX argues, Louisiana is wasting taxpayer money and delaying internet access for rural and underserved communities.
This isnāt the first time SpaceX has pushed back against state broadband plans. The company recently raised similar concerns in Virginia, signaling a broader strategy to position Starlink as a viable, efficient alternative to wired broadband, especially in regions where laying fiber is logistically challenging or prohibitively expensive. Whether regulators will adjust their funding models in response remains uncertain, but the debate highlights growing tension between legacy infrastructure and emerging satellite technologies.
(Source: Ars Technica)
