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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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