State broadband offices confront mounting uncertainty over whether to accept low-cost satellite internet bids as part of the Broadband Equity, Access and Deployment program.
Some industry experts, speaking at a Broadband Breakfast Live Online event on Wednesday, warned that SpaceX’s Starlink and Amazon’s Project Kuiper cannot deliver the service quality required under the $42.45 billion federal broadband program.
The challenge has shifted dramatically as eligible locations may have dropped as much as 65 percent, from 11.9 million in 2023 to 4.2 million today, according to a study by the New York Law School. That has transformed BEAD’s program from being one of funding shortages to a potential too much money. Randy Leuning, founder of BroadbandToolkit.com, said: “Three years ago, we approached this as there’s not going to be enough money, and now we’re approaching [it] like there’s too much money, and so how do we adapt?”
In Minnesota, Amazon Kuiper has applied for $11,083,293.95 in funding and is offering $3,552,614.48 in match to serve 18295 Locations. And just yesterday, satellite service came up in OBD BEAD Final Proposal meeting in Hutchinson MN.