More than 20 percent of BEAD locations will go to satellite and 67 percent will go to fiber

Fierce Network reports

After all the hand-wringing about the revisions to the Broadband Equity, Access and Deployment (BEAD) program under the Trump administration, it looks like about 67.1% of eligible locations will get fiber, while 20.5% will receive low-Earth orbit (LEO) satellite connections. The remaining locations will receive fixed wireless access (10%) and coaxial cable (2.4%).

These figures come from the Connected Nation website, which is tracking all the BEAD proposals. Currently, it has data for 51 final proposals out of 56, and its data shows the allocations of 3.36 million locations out of a presumed 4.2 million.

The information comes from the Connected Nation interactive BEAD tracker, which I wrote about earlier this month. Looks like the national information has been updated since I last looked.

Doug Dawson points out three flaws of BEAD

Doug Dawson knows broadband policy and technology from the ground up. He has written about three main flaws in BEAD funding

BEAD Satellite Awards. I start with the premise that rural communities are not going to be happy when somebody officially tells them that the federal government is giving money to Starlink or Kuiper to solve their rural broadband gap. It’s likely that NTIA and the FCC will declare that satellite is good broadband so that they can declare that the rural broadband gap has been solved.

There are also natural limitations on the capabilities of satellite broadband. It can be difficult to deliver a satellite signal through heavy tree canopy.  …

Defaults. There will continue to be defaults for existing broadband grant programs. This year saw significant RDOF defaults from Charter and CenturyLink. There will be defaults on networks funded by ARPA grants, where funding ends at the end of 2026.

I expect BEAD defaults. …

Crappy Mapping. The biggest group of locations missed by BEAD will be due to poor FCC maps. The BEAD map challenge was a total joke. It was fairly easy for ISPs to get BEAD-eligible locations removed from the map, including many that should have stayed on. The map challenge made it practically impossible to add locations to the BEAD map where the FCC maps were in error. There are two major flaws in the FCC maps that will surface as people complain about still not having adequate broadband.

How are BEAD changes impacting the fiber versus satellite breakdown in Wisconsin?

Wisconsin’s The Badger Project looks at BEAD funding and the relatively new focus on satellite…

Experts worry that the federal government will force states to use public funds initially earmarked for fiber-optic instead for much slower but cheaper-and-faster-to-install satellite internet provided by companies like SpaceX’s Starlink and Jeff Bezos’ Project Kuiper.

They spoke with Minnesota-based Christopher Mitchell…

The bill intended for most of the funding to go towards locally-owned fiber-optic networks, Christopher Mitchell, director of the Community Broadband Networks Initiative, a Minnesota-based think tank supporting communities’ telecommunications efforts, said in an email to The Badger Project.

“There was an expectation that only the very remote, intolerably high-cost locations would be left with satellite access,” he continued.

While fiber-optic delivers superfast and virtually uninterrupted internet access, there’s a significant, one-time cost of time and money to bury the cables in the ground, especially in rural areas with few homes. For-profit companies have often refused to make that investment without public funding, because the return is poor in sparsely populated areas.

On the other hand, satellite internet has lower setup costs in both time and money, as only a dish needs to be installed at each home or business. But as technology advances and consumers keep requiring faster internet, the speeds provided by satellite are much slower in general than fiber. Despite improvements, Starlink, the industry leader, does not regularly reach the federal definition of broadband speeds, according to an analysis by Ookla, an organization that provides measurements of telecommunications. Internet delivered via fiber-optic cables can already obliterate that minimum speed.

Starlink also says its internet service can be affected by severe weather. And questions remain if satellite internet companies can deliver on the scale needed across the country.

Recent changes in BEAD requirements has meant more satellite (in the applications) in Wisconsin…

Wisconsin’s original proposal for homes without high-speed internet access had 93% fiber-optic deployment. The revised plan submitted has 73% fiber, 13% fixed wireless, often from towers, and 13% satellite.

Amazon: Project Kuiper ready to provide satellite service in six months

Broadband Breakfast reports on Amazon Kuiper satellite, which has applied for more than $11 million in BEAD funding in Minnesota

Starlink’s one and only rival said it is ready to begin connecting Internet customers.

Amazon’s Project Kuiper said this week it plans to begin broadband service in six months, even though only a little more than a hundred satellites are currently in orbit.

At the World Space Business Week conference in Paris, Ricky Freeman, president of Amazon Kuiper Government Solutions, said the Amazon-owned company expects to provide service in five countries, Canada, France, Germany, the United Kingdom and the United States by the end of the second quarter next year, according to various news outlets.

Satellite is a sticky wicket in state BEAD plans

Broadband Breakfast reports

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.

Do satellite providers get more time to meet BEAD speed requirements than other broadband providers?

In the Office of Broadband Development Office Hour this morning, someone asked how many years low-Earth orbit satellite (LEO) had to deliver the speeds required to be eligible for BEAD funding. The answer was that OBD would adhere to NTIA guidance. So an hour later an article on LEO and BEAD in Broadband Breakfast caught my attention because it gave a more specific answer…

As broadband officials dig into the fine print of updated guidance governing a $42.45 billion federal broadband expansion program, many raised concerns Monday about new advantages carved out for low-Earth orbit satellite providers.

One of the clearest examples, they argued, was a provision under revised rules for the Broadband, Equity, Access, and Deployment program, that gives satellite providers up to 10 years to meet performance benchmarks — more than double the four years allowed for fiber and other technologies to comply. The rules, released by the Commerce Department earlier this month, purport to be “tech neutral,” but critics continue to find biases within them.

Should the smartphone-broadband bundle should be on every rural operator’s radar?

CoBank posts an article on “Why the smartphone-broadband bundle should be on every rural operator’s radar.” Here are their key points:

  • Bundles are winning: Customers increasingly prefer bundled smartphone and home broadband services for simplicity and savings – national carriers like Verizon, T-Mobile, Comcast, and Charter are capitalizing on this trend and gaining market share.
  • Rural competition is heating up: Massive federal funding, expanded wireless coverage, and improving satellite options (like Starlink and Amazon’s Project Kuiper) are intensifying competition in rural markets.
  • Technology is enabling growth: Advances like the 6GHz band and next-gen FWA systems (e.g., Tarana) are making wireless broadband more viable and scalable – even in hard-to-serve areas.
  • Smaller operators are taking notice: Regional players like WOW!, Midco, and Mediacom, along with NCTC members, are beginning to offer mobile services to compete with bundled offerings.
  • The risk of doing nothing is rising: While offering mobile isn’t easy or cheap, not responding to the bundled threat could mean higher churn, lost customers, and long-term erosion of market share.

Amazon launches its first internet satellites

KSTP TV 5 reports

Amazon’s first batch of internet satellites rocketed into orbit Monday, the latest entry in the mega constellation market currently dominated by SpaceX’s thousands of Starlinks.

The United Launch Alliance’s Atlas V rocket carried up 27 of Amazon’s Project Kuiper satellites, named after the frigid fringes of our solar system beyond Neptune. Once released in orbit, the satellites will eventually reach an altitude of nearly 400 miles (630 kilometers).

Two test satellites were launched in 2023, also by an Atlas V. Project officials said major upgrades were made to the newest version. The latest satellites also are coated with a mirror film designed to scatter reflected sunlight in an attempt to accommodate astronomers.

Recent study on consumer takes on various broadband technologies

Telecompetitor reports

A study conducted on behalf of Amdocs finds that consumers value reliability, affordability, and uninterrupted access — and suggests that providers may benefit by offering all three via mixed-technology networks. …

Cable has the highest level of internet access (39%). It is followed by fiber (31%) and FWA (9%). The study found that 3% of consumers do not have a dedicated internet connection at home.

Fully 60% of respondents say their home internet is very reliable, but at the same time cite cost as the biggest issue. Commentary in the press release says that this illustrates the need to balance performance with affordability.

Overall, the priorities are closely divided. An equal percent (38%) of consumers prioritize speed and reliability when choosing a provider. The study commentary suggests that CSPs can put together offerings in their networks that eliminate trade-offs.

FWA and satellite broadband are the new kids on the block. Amdocs says that FWA is emerging as a strong competitor but that more than half of consumers — 47% — have never heard of it.

The broadband satellite sector is even newer. The survey found that 67% of consumers would consider switching if it provides a comparable experience. Concerns about cost, reliability, and speed persist. The study found that 37% of consumers are unfamiliar with satellite Internet. This, Amdocs Research says, points to an education gap about the technology.

FCC approves SpaceX’s direct-to-cell Starlink-T-Mobile satellite service at higher power levels

Broadband Breakfast reports

The Federal Communications Commission has approved SpaceX’s request to operate its direct-to-cell Starlink-T-Mobile satellite service at higher power levels.
That’s despite the strong objections of AT&T, Verizon, and EchoStar, who found that the decision could degrade terrestrial mobile network performance. AT&T had submitted an analysis predicting an 18% drop in throughput in areas affected by SpaceX’s emissions.
The FCC granted the conditional waiver March 7, with one condition: SpaceX must mitigate any interference issues or risk losing the waiver entirely.

Trump Administration eliminates preference for fiber in BEAD grants, opens the door to satellite

Ars Technica reports

The Trump administration is eliminating a preference for fiber Internet in a $42.45 billion broadband deployment program, a change that is expected to reduce spending on the most advanced wired networks while directing more money to Elon Musk’s Starlink and other non-fiber Internet service providers. One report suggests Starlink could obtain $10 billion to $20 billion under the new rules.

Secretary of Commerce Howard Lutnick criticized the Biden administration’s handling of the Broadband Equity, Access, and Deployment (BEAD) program in a statement yesterday. Lutnick said that “because of the prior Administration’s woke mandates, favoritism towards certain technologies, and burdensome regulations, the program has not connected a single person to the Internet and is in dire need of a readjustment.”

The BEAD program was authorized by Congress in November 2021, and the US was finalizing plans to distribute funding before Trump’s inauguration. The National Telecommunications and Information Administration (NTIA), part of the Commerce Department, developed rules for the program in the Biden era and approved initial funding plans submitted by every state and territory.

Advocacy concerned the Feds will steer BEAD funding to Musk

The Voice of Alexandria reports…

An internet rights group on Tuesday raised alarm over reports the United States may steer billions of dollars to Elon Musk’s Starlink by making changes to a rural broadband deployment program.

Net neutrality supporter Free Press spoke out after the Wall Street Journal reported that the Department of Commerce could set Musk up for a windfall by overhauling a $42.5 billion program established under former President Joe Biden to bring broadband internet service to rural parts of the country.

Commerce Secretary Howard Lutnick has told staff he plans to significantly increase the share of money available to satellite-internet providers such as Starlink rather than firms that use fiber-optic cables to deliver high-speed internet service, the Journal reported, citing people familiar with the situation.

Starlink is a unit of Musk’s SpaceX company.

Musk — the world’s wealthiest person and a top donor to Donald Trump’s 2024 campaign — has status as a “special government employee” and “senior adviser to the president.”

Trump put Musk in charge of the newly created Department of Government Efficiency that has been slashing the ranks of US agencies under the auspices of budget cutting.

“The Trump administration is undermining an essential bipartisan program designed to bring reliable and affordable broadband to tens of millions of Americans — and it’s doing so just to line Elon Musk’s already bulging pockets,” Free Press co-chief Craig Aaron said in a statement.

The Commerce Department did not respond to a request for comment.

Why BEAD Should Continue to Prioritize Fiber?

The Institute for Local Self Reliance has published a policy brief on why  BEAD Should Continue to Prioritize Fiber Internet Network Investments

In designing BEAD, Congress recognized that it was foolish to spend thousands of dollars per home every 5-10 years to deliver obsolete connections and chose instead to build fiber optic networks that will last generations – ultimately both saving taxpayer dollars and delivering an equitable Internet access option to millions of rural homes. To be clear, BEAD’s priority for fiber does not bar the use of other technologies when appropriate. In cases where the cost of fiber is simply too great, other technologies are on the table – likely wireless options of both terrestrial and low-earth orbit.

Fiber does not mean bigger bills to residents…

On the matter of residential pricing, fiber optic networks in rural areas operated by rural cooperatives offer services at prices comparable to or less than that of urban areas. For instance, Paul Bunyan in Minnesota has options starting at $60/mo for 250 Mbps symmetrical and a gigabit for $80. Co-Mo Connect, one of the first electric co-ops to build its entire electric footprint with fiber, starts at $55/mo for 100 Mbps and a gig at $85/mo. Starlink residential prices start at $120/mo for far lower speeds.

Some wireless options are everywhere, but not all of the time…

A final consideration is that some wireless technologies – primarily low-earth orbit and mobile wireless – are not able to serve all homes simultaneously and may not be able to serve all homes in rural America looking for service. Some of these technologies could serve almost anyone, but cannot serve everyone – meaning that some homes will be put on waiting lists when the system reaches max capacity.

SpaceX Authorized for Operations at Lower Altitudes

I’m borrowing the Benton Institute for Broadband & Society’s recap of the FCC reports

The Federal Communications Commission’s Space Bureau granted the application of Space Exploration Holdings, LLC (SpaceX) to construct, deploy, and operate a constellation of second generation non-geostationary orbit (NGSO) fixed-satellite service (FSS) satellites, known as its Gen2 Starlink constellation. The Bureau also granted SpaceX’s application to provide Supplemental Coverage from Space (SCS) within the United States and to operate on certain frequency bands for the purpose of performing direct-to-cellular (direct-to-cell) operations outside the United States using its previously authorized 7,500 Gen2 Starlink satellites and granted SpaceX’s modification application to operate using V-band frequencies at altitudes ranging from 340 km to 360 km. The FCC authorizes SpaceX to operate its previously authorized 7,500 Gen2 Starlink satellites at the previously proposed altitudes of 340 km, 345 km, 350 km, and 360 km.  SpaceX is authorized to communicate with these satellites in the previously authorized Ku-, Ka-, E-, and V-band frequencies, in conformance with the technical specifications SpaceX has provided to the FCC the conditions previously placed on its authorizations, and new conditions the FCC now places on SpaceX. SpaceX is also authorized to conduct operations using its very high frequency (VHF) beacons at altitudes of 340 km, 345 km, 350 km, and 360 km, again, subject to conditions. Authorization to permit SpaceX to operate up to 7,500 Gen2 satellites in lower altitude shells will enable SpaceX to begin providing lower-latency satellite service to support growing demand in rural and remote areas that lack terrestrial wireless service options. The FCC decided that this action will facilitate SpaceX’s operations for its Gen2 system, which the FCC previously found would bring improved broadband connectivity to unserved and underserved areas of the United States.

I have highlighted the last portion; it seems to be lining up SpaceX technology for BEAD funding.

Doug Dawson looks at history of Starlink and RDOF and how that may impact BEAD funding

Doug Dawson describes how Starlink being denied RDOF awards might have opened the door to even greater opportunities for the satellite provider through BEAD, despite the fact that the reasons they were denied have not been entirely resolved…

The FCC finally decided to reject Starlink on the speed issue. When Starlink applied to enter the RDOF reverse auction, it said it could meet the 100/20 Mbps speed goal. And it looked for a while like it might. In the first quarter of 2021, Ookla says Starlink had an average U.S. speed of 66/16 Mbps but improved to 91/11 Mbps by the second quarter of 2022. However, since then, the speeds have slipped, and for the whole U.S. Ookla says speeds were 67/8 Mbps at the end of 2023 and a little slower in the first quarter of 2024.

Starlink has done a phenomenal job launching satellites and now has 6,371 functional satellites in orbit. But Starlink is like any ISP might be a victim of its own success – the slower speeds over time probably reflects that the number of customers has outpaced the number of satellites. The FCC was justified in rejecting the RDOF on the speed issue – the FCC 100/20 Mbps goal was not aspirational, but a real technical requirement.

The FCC could also have rejected Starlink on the coverage issue as well. One of the benefits of winning the RDOF subsidy is that winners were protected from any other ISPs receiving subsidies to build in the same Census blocks. For all practical purposes, RDOF winners in rural places were granted a monopoly – but for that award they were expected to be able to serve everybody.

In the early years, when it didn’t have a lot of satellites, Starlink put prospective customers on a wait list. The wait lists have disappeared, and Starlink is now willing to serve almost everybody in the U.S. – although there are a few places with geographical challenges where the company doesn’t claim the ability to serve.

The issue with coverage is that not everybody is a good candidate for Starlink. I live on a steep hill and am surrounded by other hills in all directions. I would guess that 35% to 45% of my view of the sky is blocked. My situation is not unusual in Appalachia, and much of the mountainous West and Southwest. If Starlink had only applied for RDOF in relatively flat areas, this would not have been an issue. However, Starlink won a lot of geography in RDOF in places like western North Carolina and the rest of Appalachia.

Starlink reception is also hindered by heavy foliage. The suggested solution for this is to put the receiver where this is not an issue. But there were places in the RDOF award areas that are fully covered by a forest canopy.

Interestingly, Starlink is back in the conversation in the BEAD grant process. Those awards are supposed to bring a broadband solution to every unserved and underserved location in the country. In every market, there are some locations where building other technologies is infeasible. NTIA prudently decided recently that Starlink is probably the only realistic solution for such places.

Unfortunately, some states say they don’t have enough money to reach everybody with fiber and/or wireless, and Starlink might get the final laugh by winning more subsidy from BEAD grants than it was denied for RDOF.