Providers of fiber internet are expressing concern over the delayed disbursement of funds promised through a Biden-era initiative aimed at expanding reliable internet access in rural areas. One such provider, Cajun Broadband from Louisiana, was awarded $33 million as part of the initiative, but reports indicate that “the money isn’t flowing,” raising fears that the new administration might shift its focus toward satellite internet options, exemplified by Elon Musk’s Starlink, according to The Washington Post.
The Broadband Equity, Access, and Deployment (BEAD) program, established under the Biden administration, allocated $42.45 billion to enhance internet service in underserved regions, primarily through fiber broadband. However, the departure of BEAD director Evan Feinman from the Commerce Department last month has led to speculation about future plans. New Commerce Department Secretary Howard Lutnick, appointed during the Trump administration, has expressed intentions to reform the program, highlighting concerns about “woke mandates” and favoritism toward specific technologies.
Many companies that rely on BEAD funding have already invested heavily in fiber infrastructure, and several states are progressing with their development plans. As of now, two dozen states have closed their project application windows. Meanwhile, Louisiana, Delaware, and Nevada are awaiting approval from the National Institute of Standards and Technology to begin allocating funds for their projects, according to Broadband Breakfast. A potential pivot away from fiber could necessitate a complete re-evaluation of state processes, potentially wasting millions in private investment, Feinman warned in statements to The Post.
Furthermore, a shift towards satellite internet could diminish the advantages of speed and reliability typically associated with fiber connections. While satellite options may appear to provide a quicker and less expensive solution for states, they could ultimately impose higher costs on consumers. Data presented by a state official indicated that customers using satellite services could end up paying 53 percent more over a 30-year period, with maintenance costs exceeding twice that of fiber services, according to a report by Bloomberg.
Last year, Elon Musk criticized the BEAD program, labeling it an “outrageous waste of taxpayer money.” While Starlink has yet to secure any funding from this initiative, changes in direction by the National Telecommunications and Information Administration could open new opportunities.
