Ellis Scherer: State Satellite Programs Offer Lessons for U.S. Broadband Deployment
LEO satellite technology is proving to be a cost-effective, high-quality solution for broadband deployment, the author writes.
A technological revolution is underway. Low-earth orbit satellite technology is proving to be a cost-effective, high-quality solution for broadband deployment. Some states are embracing it while the federal government is asleep at the wheel.
While the National Telecommunication and Information Administration continues handwringing about whether LEOs are really ready for primetime, forward-thinking states like Maine, New Mexico, and Texas are moving ahead by leveraging Starlink’s LEO satellite constellation to bridge the digital divide at a fraction of the cost and time required for traditional fiber deployment.
Maine’s Working Internet ASAP program will connect 9,000 locations with LEO satellites for $600 per location—a total of just $5.4 million. New Mexico’s Accelerate Connect NM program will connect 95,000 homes for about $737 per location, costing the state just $70 million. Texas is rolling out a $30 million LEO grant program for unserved areas. This program could potentially cover many more homes at a far lower cost than fiber.
Compare this to the fiber-biased Broadband Equity, Access, and Deployment program, where costs are often sky-high. NTIA recently approved Nevada’s BEAD plan, which will spend $554 million to connect 51,607 locations—a staggering $10,730 per location, with some reaching $77,000 per connection. The numbers speak for themselves: LEO technology delivers broadband more efficiently and affordably.
States have a major broadband deployment task ahead with the BEAD. However, these three states are leveraging LEOs outside of BEAD because the program’s current framework favors expensive fiber solutions even though non-fiber technologies can provide the same quality of experience.
Fiber is a great technology that should still be deployed where its costs are competitive, but the Biden administration’s overwhelming bias toward fiber limits states’ ability to deploy more cost-effective alternatives like LEO satellites and fixed-wireless access. Instead of adhering to NTIA’s outdated fiber priority, states should adopt an approach for choosing BEAD deployment projects that prioritizes efficiency:
Set the Extremely High Cost Per Location Threshold low—ensuring funds aren’t wasted on exorbitant fiber costs. One option is setting it at $1,200, twice the price of a Starlink terminal. When fiber costs exceed that threshold invest in LEO, FWA, and other affordable broadband solutions instead.
This approach to efficiency is both a better use of taxpayer dollars and a recognition that bridging the digital divide isn’t just about deployment; it also requires ensuring people can afford and effectively use their Internet connection. By embracing non-fiber technologies to save funds on deployment, states can direct the remaining resources to tackle the more significant causes of the digital divide. One example is affordability. Lower deployment costs mean more opportunities to offer vouchers or low-cost plans for low-income residents. Another is digital inclusion, which means ensuring people have the skills and tools needed to take full advantage of their broadband access.
Maine, New Mexico, and Texas are giving the lie to the alleged necessity of fiber to deliver for their citizens' broadband needs. The digital divide can only be closed with a flexible, forward-thinking approach—not blind adherence to fiber-first dogma.
Ellis Scherer is the research assistant for broadband policy at ITIF. He previously worked as a national security consultant, and as an intern with the National Telecommunications and Information Administration. During his internship he worked on Doreen Bogdan-Martin’s campaign to become secretary-general of the International Telecommunication Union. This Expert Opinion is exclusive to Broadband Breakfast.
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