Broadband policy shift in the US drops fiber priority, could funnel billions to Starlink

[Skye Jacobs]

What just happened? The Trump administration has announced a significant shift in the $42.45 billion Broadband Equity, Access, and Deployment (BEAD) program, eliminating the preference for fiber Internet infrastructure. This change is expected to redirect substantial funding towards non-fiber technologies, such as Elon Musk's Starlink satellite service, potentially allocating between $10 billion and $20 billion to such providers.

This move marks a departure from the Biden administration's approach, which emphasized fiber-optic networks as the most future-proof and reliable option for broadband deployment.

The BEAD program was authorized by Congress in November 2021, with the National Telecommunications and Information Administration (NTIA) developing rules under the Biden administration. These rules prioritized end-to-end fiber-optic architecture due to its ability to be easily upgraded by replacing equipment at the ends of fiber-optic facilities.

This approach also supports the deployment of 5G and other advanced wireless services, which rely heavily on fiber for backhaul. However, the Trump administration has criticized these rules as overly restrictive and ineffective.

Secretary of Commerce Howard Lutnick has been vocal about the need for change, stating that the program has not connected anyone to the Internet due to "woke mandates, favoritism towards certain technologies, and burdensome regulations."

The Trump administration is adopting a "tech-neutral" approach to provide Internet access at the lowest cost to taxpayers. This shift includes exploring ways to cut government red tape that slows down infrastructure construction to deliver high-speed Internet access efficiently and effectively.

The decision to end the fiber preference has been criticized by Democrats and advocacy groups. House Commerce Committee Ranking Member Frank Pallone, Jr., accused Republicans of undermining efforts to deploy reliable and affordable broadband, labeling Elon Musk as a "grifter."

The Benton Institute for Broadband & Society expressed concerns that the shift could leave millions with slower and less reliable Internet, as fiber broadband offers faster speeds, higher bandwidth, and symmetrical upload and download speeds, making it ideal for demanding applications like telehealth and gaming.

Despite these concerns, the Trump administration is moving forward with changes, aiming to reduce bureaucratic hurdles and expedite infrastructure construction. Republicans are also proposing legislative changes to eliminate what they see as burdensome conditions imposed by the Biden administration.

Meanwhile, Starlink could benefit significantly from these changes, potentially gaining access to substantial funding through both the BEAD program and other federal initiatives. The Federal Communications Commission could also direct more money to Starlink through universal service programs, although the FCC is not directly involved in the BEAD program.

The shift in policy has also raised questions about conflicts of interest, particularly given Elon Musk's role in the Trump administration. Recent reports suggest that Starlink could take over a $2 billion contract with the Federal Aviation Administration, although SpaceX has denied seeking to replace existing contracts. The FCC's newly appointed chairman, Brendan Carr, has expressed support for Starlink, potentially paving the way for future grant awards.

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Broadband policy shift in the US drops fiber priority, could funnel billions to Starlink

 

[Vulcanproject]

How is this spun in the interests of the United States? Fiber is more resilient against physical attack, interception and disruption. Once you laid the cable it'll outlast the equipment either end of it through multiple generations, decades of low latency and high reliability. While satellites become obsolete and can't be easily serviced.

We know exactly who stands to gain a great deal from such a change.

You know I seem to recall a history of worry about undue Catholic influence on the President, or African interests called from certain quarters. Seems to be quiet now.

 

[mammoth30]

He paid trump few hundred milion now he's geti'n paid.
Hopefully the right will start some conspiracy theories on this. lol

 

[bviktor]

Further reading: SPOF (single point of failure)

 

[wiyosaya]

Absolutely no conflicts of interest here. /s

 

[wiyosaya]

How is this spun in the interests of the United States? Fiber is more resilient against physical attack, interception and disruption. Once you laid the cable it'll outlast the equipment either end of it through multiple generations, decades of low latency and high reliability. While satellites become obsolete and can't be easily serviced.

We know exactly who stands to gain a great deal from such a change.

You know I seem to recall a history of worry about undue Catholic influence on the President, or African interests called from certain quarters. Seems to be quiet now.

Well, somehow - if the conflicts of interest are ignored. But WTF? Musk is a lapdog who changes political hats depending on which way the wind is blowing.

And I've heard a news item that SpaceX/Starlink employees are walking into FAA offices and telling them that they must switch to Starlink, and that Musk is now the Boss of the FAA.

More like Musk sees even more $ signs in his future in his new found faked political alignment. Talk about a Grifter.

IMO, Musk is setting himself up for a fall.

Thank God the Germans did not listen to his election advice.

 

[ZackL04]

The only way this makes sense is that satellite internet reaches more people for less installation cost than laying fiber.

Otherwise everything else is fishy.

But I also guarantee the fiber companies were over-billing when they get government contracts, just like healthcare or construction/auto repair when you mention insurance.

Its all a big circle j, and we will never benefit as much as we should

 

[pnntmp]

He paid trump few hundred milion now he's geti'n paid.
Hopefully the right will start some conspiracy theories on this. lol

Actually you're the one starting conspiracy theories.
There isn't any "significant shift" as the article claims, the administration simply removed the illogical explicit requirement to use fiber. Fiber wasn't banned or something, but it will have to compete with other solutions. If fiber is cheaper, technically better and can quickly provide access to huge sparsely populated areas, it will win. Judging from the results so far (or the absence thereof, to be precise), and the piles of cash spent, fiber doesn't seem like the ideal solution. But its still in the race.

 

[Baldrickalpha1]

Actually you're the one starting conspiracy theories.
There isn't any "significant shift" as the article claims, the administration simply removed the illogical explicit requirement to use fiber. Fiber wasn't banned or something, but it will have to compete with other solutions. If fiber is cheaper, technically better and can quickly provide access to huge sparsely populated areas, it will win. Judging from the results so far (or the absence thereof, to be precise), and the piles of cash spent, fiber doesn't seem like the ideal solution. But its still in the race.

Hardly illogical to go fiber when it's the best long term investment from a durability standpoint

 

[The Talking Tech]

Welcome to the corrupted Trump era, where only his rich allies will benefit from tax payers dollars.

 

[pnntmp]

Hardly illogical to go fiber when it's the best long term investment from a durability standpoint

What's illogical is limiting the choice to a single technology.

How do you know what's "the best long term investment from a durability standpoint"?
In what units do you measure investment bestness from a durability standpoint? What's the result for fiber? What are the results of the next 3 competitors?

 

[opckieran]

Thank Biden for allowing those contractors to underdeliver and therefore take advantage of the US taxpayer.

 

[Kirby1]

Thank Biden for allowing those contractors to underdeliver and therefore take advantage of the US taxpayer.

This is what's wrong with the magas. Literally cannot accept that their guy is a fraud no matter what.

 

[Vanderlinde]

They are cutting costs. 42 billion. Out of a way insane program if you ask me.

Yes the world needs internet, but no not everyone needs 1000/1000.

 

[NumberNine]

ISPs will take this to court. They've had a sweet situation so far, sitting on rural communities like an untapped natural resource, creating territorial noncompetitive agreements or directly dealing with officials to ensure the area is reserved for times when they need bigger numbers.

I'd wager they'll fight for their government handouts rather than be pulled off the teet and replaced by Starlink.

 

[GodisanAtheist]

IMO if conservatives would actually conservative for once, we're actually in a great situation for market forces to drive down cost and improve service for everyone. Starlink is disruptive as hell for land line, 5G cell is a fantastic middle ground for most people, nothing is ever going to be at land lines for speed...

Get the industries fighting each other to earn the consumer's dollar instead of picking winners and losers!

 

[kiwigraeme]

USA is way behind most of the free wprld providing fast internet connections , unlimited Data for low cost. yes their are local exceptions

But USA citizens prime objective is to bend over and take it sans lube and rave how lucky they are

Sole ISP getting monopolies and subsidies and doing nothing is par for the course

All those socialist countries like Germany with cheap data/mobile plans well they are bad

This will affect red voters in rural areas more - some were so excited that fiber was scheduled to be installed in coming months - had sorry you voted for this 'saving" - you and all your neighbours can fight over less bandwidth on starlink

One aerial nuclear bomb should take out some mobile , internet if design right . Off course USAD is spending much much more to hardened it's infrastructure

So much winning - here I am on cheap unlimited data

What's more pathetic is corn belt, wheat belt is really pretty flat , geographically stable

Oh well - if sewage in water is fine per supreme court, then this is just dandy

least egg companies are making huge profits at the moment - I mean huge - look it up if you have data to spare

 

[NyaAgain]

I have fiber run to my house and all of you pretending it's solid and will last forever are just giving away that you haven't tried it yet.

 

[toooooot]

How is this spun in the interests of the United States? Fiber is more resilient against physical attack, interception and disruption. Once you laid the cable it'll outlast the equipment either end of it through multiple generations, decades of low latency and high reliability. While satellites become obsolete and can't be easily serviced.

We know exactly who stands to gain a great deal from such a change.

You know I seem to recall a history of worry about undue Catholic influence on the President, or African interests called from certain quarters. Seems to be quiet now.

It is so. But I think the change was not made out of variety of choices. US government pumped a lot of money into ISPs to expand those fiber links. And from the articles I keep reading time to time about this subject, it did not go very well.
They might be picking an option in the absence of other options.
Starlink is there, it shows to be reliable and could be very affordable if a lot of people sign up to use it.
Compared to fiber, it sucks a**. But if it is the only better option for people who will die waiting for fiber, then it is not such a bad option.
IPS failed to expand fiber. Giving them more money does not seem like a good idea.
I fear though, that with shift to starlink, fiber will expand even slower until it becomes a myth to people in many areas including places where new homes were built recently.
I do not want starlink to be my main option for internet, but I would rather have it than a 2mbps connection as many people still have.

 

[hahahanoobs]

I have fiber run to my house and all of you pretending it's solid and will last forever are just giving away that you haven't tried it yet.

The fastest and most reliable internet connection technology by far is fiber optics.

https://www.gatewayfiber.com/blog/why-fiber-internet-is-more-reliable

 

[hahahanoobs]

Trump will make us all miss Joe.

 

[Plutoisaplanet]

Hardly illogical to go fiber when it's the best long term investment from a durability standpoint

It's illogical to go with fiber when you're in a very rural place. That's why the requirement was eliminated. Isn't that what this program is for in the first place? Remember who Donald Trump's political base is... Literally all the rural places in the US. If you really think that fiber optic infrastructure is going to cover all of the US and it'll be more economical to do so, you're crazy.

As someone who uses 300 Mbps fiber optic Internet, I cannot tell the difference from when I had 60 Mbps cable Internet. There is no need to prioritize Gigabit Internet. I also get complete outages occasionally, so I don't really think cable or other types of Internet delivery were the problem with reliability.

This is what's wrong with the magas. Literally cannot accept that their guy is a fraud no matter what.

The changes don't favor Elon Musk or SpaceX. In reality, the program used to be biased before. Maybe you should think about it some more lol?

 

[ZedRM]

Trump will make us all miss Joe.

No it won't. Both of them are a joke. They're just different jokes. Different jokes for different folks?? LOL!

 

[toooooot]

I have fiber run to my house and all of you pretending it's solid and will last forever are just giving away that you haven't tried it yet.

It is as good as the company that runs it. If your area is prone to storms, that could be the reason. Otherwise, they just turn their equipment off for maintenance.
I remember the time when Comcast would turn off the internet every late evening at the same time.
It was annoying as hell as a gamer.
Fiber is more reliable because of how it works. Unfortunately, it can only be as good as a company managing it.

 

[pnntmp]

USA is way behind most of the free wprld providing fast internet connections , unlimited Data for low cost. yes their are local exceptions

But USA citizens prime objective is to bend over and take it sans lube and rave how lucky they are

Sole ISP getting monopolies and subsidies and doing nothing is par for the course

All those socialist countries like Germany with cheap data/mobile plans well they are bad

Attempts to generalize usually result in nonsense, just like the claims above.
The majority of US population has the same internet access as most of the first world. But the US is HUUUUGE, and there are plenty of vast, sparsely populated areas - they are the problematic ones. As you may have guessed already, the ISPs are not rushing to compete and build infrastructure in areas with one person per square mile. But an affordable satellite connection solves the problem right away.

Oh, and Germany is not socialist - it's a densely populated country with tons of mobile/ internet/ etc. providers - that naturally results in cheap plans. If they were socialist, they'd be without internet still.