Will the new administation force a shift away from fiber and toward satellite?

The $42 billion Broadband Equity Access and Deployment (BEAD) program, initiated under the Biden administration to provide high-speed internet to rural America, is currently on hold as the Trump administration reconsiders its approach. As outlined in an article in the Washington Post (requires subscription), the program, which had bipartisan support when approved by Congress in 2021, is being revamped to be more "tech-neutral" and open to satellite internet solutions like Elon Musk's Starlink.

Rural internet providers like Cajun Broadband, which was awarded $33 million in January to serve Louisiana's estimated 450,000 households without reliable internet, are now in limbo. Commerce Secretary Howard Lutnick announced in March that the program would drop what he called "woke mandates" and "burdensome" regulations.

While the original program heavily favored fiber-optic infrastructure as the gold standard for speed and reliability, critics argue this approach is too expensive and time-consuming. Proponents of fiber, however, note that while satellite internet may have lower initial setup costs, it would cost households significantly more in the long run - approximately $120 monthly for Starlink versus $80 for the average fiber plan.

Some state broadband offices support streamlining the process, but providers worry that any major program changes could waste years of planning and millions in private investment. Evan Feinman, who resigned as the BEAD program director in March, expressed concern that the shift might favor Musk's business interests at the expense of rural America's long-term internet infrastructure needs.