SpaceX is contesting Louisiana’s plan to use over $400 million in federal funding for fiber internet installations instead of allocating it to satellite-based services like Starlink. The company claims that serving virtually all 127,000+ locations under the BEAD program for less than $100 million would be more cost-effective.
The state opted for fiber connections at an average per-location cost of $4,449, which SpaceX says is “wasteful and unnecessary taxpayer spending.” The company argues that Louisiana violated the Commerce Department’s new rules for the BEAD program, which prioritize technology neutrality and award grants based on lowest cost to the program.
SpaceX demands that Louisiana revise its proposal or have the Commerce Department’s National Telecommunications and Information Administration intervene. This is not the first time SpaceX has protested a similar plan in Virginia, where Starlink is set to receive $3.2 million of a $613 million fund.
The company claims that Starlink can be deployed immediately for lower costs and has its own gigabit speeds, pending FCC approval. However, critics argue that SpaceX is trying to take subsidies away from faster gigabit fiber installations, which can cost less than Starlink’s $120 monthly fee.
Under the BEAD program, SpaceX is only obligated to provide a free Starlink dish to users in underserved areas and reserve network capacity. The Commerce Department has not commented on SpaceX’s protests, but Louisiana’s proposal will need to receive approval from the NTIA before funding can be awarded.
Source: https://uk.pcmag.com/networking/159633/after-virginia-spacex-also-protests-louisianas-wasteful-fiber-plans