US Government Plans Substantial Funding for Musk's Starlink to Expand Rural Internet Access
The Biden administration seeks to enhance broadband connectivity through satellite internet in underserved regions.
The United States government is poised to allocate significant funding to Starlink, the satellite internet service operated by Elon Musk, in a bid to improve internet access in rural and underserved areas.
The Department of Commerce, under Secretary Howard Lutnick, has directed federal employees to earmark a portion of public broadband funding specifically for Starlink services.
This funding strategy could result in billions of dollars in revenues for the satellite internet provider.
The initiative forms part of the Broadband Equity, Access and Deployment (BEAD) program, which was established during President Joe Biden's tenure to facilitate high-speed internet connectivity primarily in regions lacking adequate service.
The total funding allocated for this initiative amounts to approximately €38.5 billion, aimed at bridging the digital divide across the country.
Starlink is anticipated to be a significant beneficiary of this federal funding, especially in areas where traditional internet infrastructures, such as fiber optics, are not economically viable.
Earlier assessments indicated that roughly ten percent of the overall federal broadband funding could be directed toward Starlink services.
Since the transition to the administration of President Donald Trump, Secretary Lutnick has introduced major changes to the funding program, openly critiquing the prior guidelines instituted by the Biden administration.
He has advocated for a technology-neutral strategy in the allocation of funds, promoting open access to various technologies rather than favoring specific types.
Ethan Feinman, the former head of the BEAD program, disclosed that recent discussions among program staff have encouraged increased investments in satellite internet connectivity, identifying Elon Musk as a pivotal figure in this policy shift.
The newly adjusted criteria for funding distribution suggest that Starlink may receive heightened levels of support, with projections estimating between €9.1 billion and €18.2 billion in funding.
Despite fiber optic connections generally offering faster and more maintenance-efficient services, the revised focus of the BEAD program indicates a pronounced emphasis on bolstering satellite-based internet solutions, reflective of a broader commitment to ensuring equitable broadband access across the nation.
The Department of Commerce, under Secretary Howard Lutnick, has directed federal employees to earmark a portion of public broadband funding specifically for Starlink services.
This funding strategy could result in billions of dollars in revenues for the satellite internet provider.
The initiative forms part of the Broadband Equity, Access and Deployment (BEAD) program, which was established during President Joe Biden's tenure to facilitate high-speed internet connectivity primarily in regions lacking adequate service.
The total funding allocated for this initiative amounts to approximately €38.5 billion, aimed at bridging the digital divide across the country.
Starlink is anticipated to be a significant beneficiary of this federal funding, especially in areas where traditional internet infrastructures, such as fiber optics, are not economically viable.
Earlier assessments indicated that roughly ten percent of the overall federal broadband funding could be directed toward Starlink services.
Since the transition to the administration of President Donald Trump, Secretary Lutnick has introduced major changes to the funding program, openly critiquing the prior guidelines instituted by the Biden administration.
He has advocated for a technology-neutral strategy in the allocation of funds, promoting open access to various technologies rather than favoring specific types.
Ethan Feinman, the former head of the BEAD program, disclosed that recent discussions among program staff have encouraged increased investments in satellite internet connectivity, identifying Elon Musk as a pivotal figure in this policy shift.
The newly adjusted criteria for funding distribution suggest that Starlink may receive heightened levels of support, with projections estimating between €9.1 billion and €18.2 billion in funding.
Despite fiber optic connections generally offering faster and more maintenance-efficient services, the revised focus of the BEAD program indicates a pronounced emphasis on bolstering satellite-based internet solutions, reflective of a broader commitment to ensuring equitable broadband access across the nation.
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