The federal Broadband Equity, Access and Deployment (BEAD) program has remarkably opened its doors to satellite technology, sparking considerable debate among experts regarding its optimal application within the nation’s crucial internet infrastructure buildout.

Administered by the National Telecommunications and Information Administration (NTIA), the BEAD program’s evolving rules, particularly under recent administrations, have shaped the competitive landscape for technologies like fiber and satellite. While earlier rules favored the resilience of fiber optic networks, more recent directives have broadened the scope, allowing satellite providers a longer timeframe to meet performance benchmarks for Broadband Infrastructure grants.

Economically, Satellite Internet Access boasts a significant advantage, often deployed at a fraction of the cost compared to traditional fiber. However, this cost-effectiveness comes with inherent challenges, especially when service is extended to dense population centers or areas with thick natural impediments like tree canopies, which can severely impact performance for Low Earth Orbit (LEO) systems.

Experts like Glenn Fishbine emphasize the need for caution, particularly in regions where alternative affordable options are scarce. He points to the critical issue of network density, illustrating how a Starlink radio beam, covering approximately 63 square miles, can quickly become oversaturated with a higher subscriber count, making it difficult to achieve the FCC’s benchmarks of 100 Mbps download and 20 Mbps upload speeds.

Recent data further compounds these concerns, with a June 2025 report indicating that only a small fraction of U.S. Starlink speed-test users consistently met the FCC’s minimum Broadband Infrastructure requirements. While acknowledging the innovation of satellite technology, its application as a blanket low-cost solution for the BEAD program without considering population density poses a significant risk for states.

J. Randolph Luening, another prominent voice in broadband planning, reinforces that Satellite Internet Access is ideally suited for very sparse, uncluttered environments, akin to remote Western deserts, where its efficiency is maximized. Conversely, Fiber Optic Networks remain the gold standard for urbanized areas, and the current structure of BEAD grants often limits states to awarding a single technology per build area, making a mixed approach challenging despite an “explosion of satellite bids” in recent rounds.

A critical and lingering concern, particularly for the success of Rural Connectivity, revolves around Internet Affordability for consumers. The removal of Biden-era requirements for low-cost service plans from the new rules highlights a potential pitfall. With monthly satellite subscriptions often exceeding those of terrestrial-based options, the economic burden on households, especially in rural communities, could undermine the program’s goal of universal access.