Starlink operator SpaceX is fighting Virginia’s plan to deploy fiber Internet service to residents, claiming that federal grant money should be given to Starlink instead. SpaceX is already in line to win over $3 million in grant money in the state but is seeking $60 million.
Starlink is poised to benefit from the Trump administration rewriting rules for the $42 billion Broadband Equity, Access, and Deployment (BEAD) grant program. While the Biden administration decided that states should prioritize fiber in order to build more future-proof networks, the Trump administration ordered states to revise their plans with a “tech-neutral approach” and lower the average cost of serving each location.
With the Trump administration backing its attempt to obtain more federal funding for Starlink, SpaceX is likely to object to state plans that still include significant fiber builds. That’s what happened yesterday when SpaceX filed comments on Virginia’s final proposal, which will be reviewed by the National Telecommunications and Information Administration (NTIA).
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