The state of Virginia believes fiber is the best choice to deploy broadband using BEAD grants. Starlink operator SpaceX calls that a waste of taxpayer money and is fighting the state over it. SpaceX says the funds should go to its Starlink service instead. SpaceX is already in line to win over $3 million in BEAD money in the state but is seeking $60 million, according to Ars Technica.
Starlink is poised to benefit from the Trump administration rewriting the rules for BEAD eligibility to make them less reliant on fiber and more technology neutral and lower the average cost of serving each location, Inside Towers reported.
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 happened last week. SpaceX told the Virginia Department of Housing and Community Development (DHCD) that its final BEAD plan for the state is “a massive waste.”
SpaceX wants Virginia to change its BEAD plan, reports Cardinal News. NTIA will review the proposal. If Virginia doesn’t change the strategy, SpaceX wants the NTIA to deny Virginia’s plan.
The state DHCD defended its choice and said it chose technology-neutral solutions, reports Ars Technica. Noting that its “project areas span from mountains and hills to farmland and coastal plains,” the DHCD said its previous experience with grant-funded deployments “revealed that tree canopy, rugged terrain, and slope can complicate installation and/or obstruct line-of-sight.” State officials said that wireless and low-Earth orbit satellite technology “can have signal degradation, increased latency, and reduced reliability” when there isn’t a clear line-of-sight.
Virginia officials did not offer a public reaction to SpaceX’s stance, notes Policyband.
By Leslie Stimson, Inside Towers Washington Bureau Chief
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