SpaceX Threatens to Exit US Internet Program

SpaceX is subtly signaling a potential withdrawal from a federal program aimed at expanding high-speed internet across the United States. The company is slated to receive $661 million from the Broadband Equity, Access, and Deployment (BEAD) program, which was recently updated to favor satellite internet. This funding is contingent upon SpaceX providing Starlink dishes to over 470,000 locations and ensuring minimum internet speeds.

However, SpaceX has reportedly requested waivers for several BEAD program requirements. These include a demand for US states to pay 50% of the federal funds upfront, rather than through milestone-based installments. The company also seeks exemption from reserving internet capacity for BEAD locations, arguing it is inefficient and better managed through dynamic network planning.

These proposed changes, if enacted, could also benefit Amazon's upcoming satellite internet service, which is expected to receive $302 million from BEAD. Critics argue that SpaceX's requests amount to reduced government oversight and could jeopardize service quality, particularly concerning network congestion and speed requirements.

Furthermore, SpaceX is requesting to be waived from a rule requiring standard installations for each customer, proposing instead an optional, paid professional installation service. The company also plans to offer a low-cost service option for eligible BEAD locations, though pricing details and existing plans vary. SpaceX has recently gained regulatory approval to launch upgraded satellites to enhance its gigabit internet capabilities.