Something that's been argued by various commentators — including here at tiny FWIW — for years
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“It’s gonna go right there, any decade now. Next to that pie”
I wrote about this same subject back in September 2023, and obviously, nothing’s changed, except that rip-off’s gotten worse.
Biden's Broadband Boondoggle Should Embrace Satellite Internet Instead
Rick Moran, PJ Media:
The 2021 Infrastructure Investment and Jobs Act set aside $42.5 billion for building out broadband internet connections for rural America.
"With this funding, along with other federal investments, we’re going to be able to connect every person in America to reliable high-speed Internet by 2030," Joe Biden said in June 2023.
As of Dec. 2025, not a single household, rural or otherwise, has been hooked up to any broadband provider. In fact, just 30 states have had their plans for rural broadband approved.
At this rate, the program might cover "every person in America" by 2050.
The administrative holdups are built into the system. The Broadband Equity, Access, and Deployment (BEAD) Program must approve all state plans and ensure they comply with existing federal rules. And yes, that included DEI considerations until Donald Trump took office.
…. "In addition, states had to prove that they promoted participation from minority-owned businesses, women-owned businesses, and 'other socially or economically disadvantaged individual-owned businesses,'" reported The Free Press. In addition, states had to create a "Five-Year Action Plan that required collaborating with unions and 'underrepresented communities,' including prisoners, LGBTQI+ individuals, women, and people of color."
…. Meanwhile, there's been a dynamic revolution in satellite internet. Elon Musk's Starlink system of hundreds of satellites in low Earth orbit (LEO) providing internet worldwide just signed up their eight millionth customer. And Jeff Bezos's Amazon Leo is gearing up to offer direct-to-consumer internet service. Amazon has invested billions into Leo technology, and already has more than 150 satellites in orbit.
The advantages of satellite internet are becoming too numerous to ignore. When Musk first applied for BEAD approval so that Starlink customers could receive subsidies as an internet provider in 2024, they were pegged as an "alternative internet provider."
Since then, the Starlink system has dramatically increased upload and download speeds, making its performance comparable to that of most fiber systems.
The clear advantages in cost that Starlink has over fiber should force BEAD to reassess the company's status as an "alternative" internet provider.
Fiber broadband depends on laying long stretches of physical cable, something that is often expensive or unprofitable. For example, The Wall Street Journal reported in 2023 that the federal plan to expand broadband into Nebraska's Winnebago Tribe was expected to cost an average of $53,000 per household or workplace; in parts of Montana, some connections are estimated at a whopping $300,000 each. These costs frequently mean rural fiber expansion depends heavily on government subsidies.
The economics of satellite internet are fundamentally different. Starlink installs for about $600 in hardware. There's no cost per mile, deployment is immediate, and maintenance is minimal. It's a self-sustaining model with minimal subsidization necessary.
Reason.com notes that "with SpaceX continuing to launch not only more LEO satellites but higher-performing ones with its second generation, the company's service quality is poised to continue advancing."
Naturally, the fiber industry is not happy with opening the door for satellite internet companies to get a piece of that $42.5 billion in funding.
The Fiber Broadband Association (FBA) sent a letter to Commerce Secretary Howard Luttnic "urging that BEAD remain centered on fiber deployment, while five other industry associations issued a joint letter to President Donald Trump, emphasizing BEAD as a 'golden opportunity' to 'drive as much fiber infrastructure as feasible into our country.'"
Meanwhile, the Communication Workers of America (CWA), a powerful radical left union, accused Lutnick of "prioritizing the 'interests of a few billionaires and satellite companies,' and dismissing LEO technology as 'expensive and unreliable.'"
It seems monumentally foolish to invest $42.5 billion in a broadband system when a radically less expensive alternative is readily available. However, we should never forget what S.R. Haddon, the billionaire who figured prominently in the film Contact, said: "First rule in government spending: why build one when you can have two at twice the price?