U.S. state, Ohio, made a rather surprising telecommunications decision. Instead of focusing only on fiber networks, the state has chosen SpaceX’s Starlink to deliver internet to over 31,000 underserved locations.
What’s Happening & Why This Matters
Starlink Takes the Lead
Ohio’s Broadband Equity, Access, and Deployment (BEAD) program is awarding Starlink a large share of federal funding. The satellite provider will serve 41% of the state’s eligible underserved locations, far surpassing Charter Communications’ Spectrum, which comes in at 13%.
The deal gives Starlink $51.6 million in subsidies, making it the second-largest BEAD allocation for the company after Montana. In Montana, Starlink was granted $119 million to connect 20,000 underserved sites. Colorado has also tapped satellite internet, but leaned toward Amazon’s Project Kuiper instead.
Funding and Priorities
Ohio received $793 million in BEAD funds, yet the state’s proposal only requests $227 million. By prioritizing lowest cost bids, Ohio positioned Starlink as a frontrunner. Satellite deployment is far less expensive and faster than laying new fiber optic networks across rural communities.
Ohio’s plan requires Starlink to provide 100Mbps download speeds and 20Mbps uploads. Competing fiber providers, including Spectrum and AT&T, are committing to gigabit speeds. Critics argue the plan sacrifices long-term performance for short-term savings.
Technology Neutrality Controversy
The choice towards satellite internet stems from changes under the Trump administration. BEAD rules were adjusted to favor technology neutrality, ensuring cheaper but widely available options like satellite were eligible. While cost savings are clear, critics warn that rural communities may be left with slower, less future-proof infrastructure.
Doug Adams, a broadband marketing executive, voiced concern over Ohio’s proposal, saying:
“An argument could be made that the people who want satellite, already have satellite. Or to quote one off-the-record (and tongue-in-cheek) state broadband leader, ‘What are we even paying for?’”
SpaceX’s Push for More Influence
Under BEAD, Starlink must provide eligible locations with free satellite dishes and reserve network capacity, but it does not need to offer discounted service plans. Despite that, SpaceX continues to upgrade Starlink, with promises of reaching gigabit speeds in the future.
The company has also pushed back on being excluded in some states, such as Virginia and Louisiana, and has urged the U.S. Commerce Department to intervene when state broadband offices favor fiber.
TF Summary: What’s Next
Ohio’s decision underscores a growing divide in U.S. broadband policy: affordability versus performance. Starlink delivers quick deployment and lower upfront costs, but its service requirements trail fiber networks. If Starlink succeeds in upgrading to gigabit speeds, Ohio’s bet may pay off. If not, underserved communities may still feel left behind.
As more states (and countries) finalize their BEAD strategies, the decisoion to select satellite versus fiber is going to resurface. With billions of dollars in play and millions of Americans waiting for better connectivity, what is the right decision?
— Text-to-Speech (TTS) provided by gspeech