Home / Technology / Starlink & Amazon Leo Bag $1 Billion in US Internet Funds
Starlink & Amazon Leo Bag $1 Billion in US Internet Funds
5 Dec
Summary
- Starlink and Amazon Leo to receive $963 million for internet expansion.
- Nearly 900,000 locations to be served by satellite internet providers.
- Fiber connections will receive majority of funds, costing more per location.
SpaceX's Starlink and Amazon's upcoming satellite internet service, Leo, are poised to receive a substantial $963 million from the US government's Broadband Equity, Access, and Deployment (BEAD) program. This funding will support the expansion of high-speed internet to nearly 900,000 underserved locations across all 50 states, with California receiving the largest allocation for satellite services.
While the majority of BEAD funds will finance more expensive fiber optic connections, the allocation to satellite providers signifies a strategic shift, partly influenced by a past administration's push for technology neutrality to reduce deployment costs. This funding allows Starlink and Amazon Leo to reach a significant portion of previously unconnected areas, even before Amazon's service officially launches.
Despite the significant investment, some critics question the allocation of federal funds to services already widely available or argue that fiber offers superior speeds and reliability. However, the BEAD program's structure, with its lower per-location costs for satellite deployments compared to fiber, indicates a successful effort to lower broadband expansion expenses and utilize remaining funds effectively.
