In early March, U.S. Secretary of Commerce Howard Lutnick proposed changes to a federal broadband connectivity program that would favor Low Earth Orbit (LEO) satellite connectivity, like Starlink, over fiber optic, a faster and more reliable form of internet access.
Critics say Lutnick’s proposal to prioritize LEO will worsen the digital divide by abandoning rural communities without the long term economic benefits of fiber optic infrastructure.
Broadband Equity, Access, and Deployment, or BEAD, is a $42 billion grant program created by the Biden administration under the Infrastructure, Investments, and Jobs Act of 2021. BEAD aims to connect 25 million Americans with high speed internet in all 56 states and territories.
In a meeting with BEAD staff earlier this month, Lutnick said he wants to make the program “technology-neutral” by shifting the focus to LEO satellite connectivity. Wall Street Journal reporter Patience Haggin said that Lutnick’s proposal would make it easier for Elon Musk’s LEO satellite technology, Starlink, to claim funds allocated for rural broadband development.
Lutnick’s proposed changes would exacerbate the digital divide between rural and urban residents, according to the Benton Institute’s Broadband & Society Director of Policy Engagement Drew Garner. The Benton Institute is a nonprofit that focuses on broadband access.
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