Satellite internet firms gain ground as US broadband program stalls
The Verge reports that BEAD, a $42.45 billion broadband program, has shifted away from its fiber-first aims while states face delays.
By James Whitfield · Staff Writer
2 min read
A federal broadband expansion program meant to improve internet access for underserved communities has become a point of contention as satellite internet ventures tied to Jeff Bezos and Elon Musk benefit from public support, The Verge reported. The fight matters because the $42.45 billion Broadband Equity, Access, and Deployment program was designed to help close gaps in US internet service.
The Verge reported that BEAD was created under President Joe Biden’s 2021 Build Back Better initiative with the goal of funding high-quality fiber networks in communities that had long lacked adequate broadband. Five years later, The Verge said only a small number of the millions of Americans targeted for upgrades have received them.
The report said the program has been slowed by bureaucracy and delays under President Donald Trump, with states caught in the process. The Verge also reported that accountability has been limited as the program’s direction has changed.
Rocket test highlights satellite push
One example cited by The Verge involves Amazon Leo, Amazon’s low Earth orbit satellite internet project. At about 9 p.m. ET on May 28, a Blue Origin New Glenn rocket was on a launchpad at Cape Canaveral Space Force Station for a hot-fire test, according to The Verge.
The rocket was preparing for Amazon Leo satellites, described by The Verge as the first of 24 batches planned for launch into low Earth orbit. The Verge reported that the satellite internet project was backed by hundreds of millions of dollars in public funding tied to the Biden-era effort to address the digital divide.
Before the satellites arrived at the launch site, Blue Origin experienced an anomaly during the test, Reuters reported. The Verge described the result as an explosion that left wreckage on the ground.
Fiber goals meet satellite funding
The Verge reported that Bezos and Musk have become two of the largest beneficiaries of BEAD. Musk’s role centers on satellite internet, while Bezos is tied to Amazon Leo through Amazon and Blue Origin.
The program’s original focus, according to The Verge, was fiber broadband, which the report described as a more durable infrastructure choice for underserved areas. The shift toward satellite-backed projects has raised questions about whether BEAD is still serving the communities it was created to reach.
The Verge characterized the current state of the program as a departure from its initial promise, with billions of dollars at stake and states still waiting to complete projects. The report said the result has been a stalled rollout for many households that were supposed to see better internet access.
This story draws on original reporting from The Verge.