According to the Wall Street Journal (WSJ), US Secretary of Commerce Howard Lutnick wants the BEAD broadband universalization program to become technology neutral.

The change would allow states to fund more satellite internet providers like Starlink, rather than primarily traditional fiber-optic businesses.

Republicans say the BEAD program is moving too slowly and is bogged down by unnecessary rules. For example, states can only fund alternative technologies like satellites in areas where installing fiber optic cables is not feasible or cost-effective.

Starlink policyband
Starlink could benefit greatly if some of the rules of the BEAD program change. Photo: policyband

The new rules have the potential to significantly increase the amount of funding Starlink can receive, according to the WSJ. Under the original rules, Starlink was expected to receive a maximum of $4.1 billion, while the new rules would raise that figure to between $10 billion and $20 billion.

Sources revealed the change could be announced as early as this week.

Several other BEAD program rules are also likely to be eliminated by Secretary Lutnick, including those related to climate impact, sustainability, as well as provisions that encourage states to fund companies with racially diverse workforces or union participation.

The program requires Internet service providers that receive grants to offer low-cost plans to low-income customers.

Under former US President Joe Biden, the program favored fiber optic cables because it believed the service was more reliable and the infrastructure more durable than other technologies.

Starlink has more than 7,000 satellites orbiting the Earth. The company says it serves more than 5 million homes, businesses and vehicles around the world, including many in rural America.

Despite its high price tag—a few hundred dollars for an antenna plus a $120 monthly service fee—Starlink has attracted a loyal following because it operates in places where fiber optics are not yet available.

Many broadband providers are worried that the Musk-led Department of Government Efficiency (DOGE) will eliminate or reduce funding for the program.

With the expected change, they may not benefit as much as expected as non-fiber technologies get a larger share.

Starlink lobbied the Commerce Department to change the program's rules last year but backed off after President Donald Trump took office, according to people familiar with the matter.

(According to WSJ)

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