Light Reading reports on the NTIA’s response to SpaceX’s search for BEAD rule exemption last week…

The NTIA released new guidance this week that seems to clarify that companies receiving BEAD awards cannot retroactively absolve themselves of certain program requirements. The clarification comes after a leaked rider that SpaceX reportedly sent to at least one state revealed that the company was attempting to circumvent certain capacity and performance requirements.

As per that proposed rider, originally leaked to Broadband.io late last month, SpaceX – which operates the low-Earth orbit (LEO) satellite service Starlink – sought to absolve the company of certain requirements it agreed to during the BEAD bidding process. Those include, among others, that Starlink’s quality of service is not guaranteed if Starlink determines the customer’s “view of the sky is obstructed.” The rider also states that Starlink will offer free customer premises equipment (CPE) but not installation.

Additionally, the rider would exempt Starlink from the NTIA’s requirement that states “reserve sufficient capacity from the LEO provider to deliver broadband service that meets the BEAD performance and technical requirements to each BSL,” instead asking states to agree that Starlink “is not required to keep reserved capacity fallow where potential subscribers in the Project Area have not yet requested service.”