When President Joe Biden announced a plan to spend $42 billion on high-speed internet for everyone in the US, he chose to go with fiber-optic cables. This decision frustrated Elon Musk, as he believed his Starlink satellite internet could connect rural areas much faster and cheaper. As a result, relations between Biden and Musk soured, especially since Musk used his influence to help Donald Trump gain support.
Now, some Republicans are pushing to let Starlink compete with fiber-optic internet, potentially giving a lot of money to Musk. Starlink, a service from Musk’s SpaceX, has been helpful in connecting areas affected by disasters—like floods in North Carolina and conflicts in Ukraine. Although fiber internet is known to be faster and more reliable, installing it can take a long time. Critics argue that satellite and 5G wireless connections can quickly bring internet access to remote locations.
Biden’s program, called the Broadband Equity and Access Deployment (BEAD) Program, has faced criticism for not getting people connected fast enough. Some Republican lawmakers, like Senator Ted Cruz, say the program favors fiber too much and keeps out newer technologies like satellites.
SpaceX recently opened a factory in Texas, claiming it can produce millions of Starlink terminals each year. During hurricanes, many people in troubled areas have relied on Starlink to stay connected. One Republican Senator, Dan Sullivan from Alaska, cautioned that Starlink’s coverage might not be as reliable yet, and he wants to ensure that internet upgrades in his state don’t slow down because of new rules.
In Louisiana, where they’re planning to spend BEAD money, officials have set a high cost limit for fiber installation, while some experts think the threshold should be much lower to encourage using satellite solutions like Starlink. Although connecting to satellite internet is cheaper initially, it can come with higher monthly bills compared to fiber.
Musk has tried to convince the US government that Starlink could help rural areas connect quickly but has faced opposition from regulators. In 2022, the Federal Communications Commission withdrew an $885 million grant that Starlink was supposed to receive. Musk was very upset with this decision and has voiced his frustrations repeatedly.
He claims that Starlink could provide service to remote locations like the Pine Ridge Indian Reservation for a fraction of the cost of installing fiber there. Critics, including Senator Elizabeth Warren, worry that Musk’s financial interests might lead to decisions that aren’t in the public’s best interest, especially since he benefits from various government programs.
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