NTCA: Satellite Internet Not a Substitute for Wireline

WASHINGTON, Nov. 12, 2024 – A rural broadband association is urging the Federal Communications Commission to maintain its established position that satellite internet is not a substitute for wireline broadband.

NTCA - The Rural Broadband Association said that satellite broadband coverage is complementary to wireline internet service, rather than a replacement for it. 

“In consumer theory, a substitute service is one that can be used in place of another with little or no noticeable difference. Yet when comparing satellite to other 'at-home' services, numerous differences manifest, including price, reliability, and security,” NTCA Vice President of Policy and Industry Innovation Joshua Seidemann said. “Satellite services typically include data restrictions. Spectrum-based services are also susceptible to interference from weather, disruptions to 'line of sight' propagation, atmospheric conditions, and other factors that can disrupt signals.”

The association noted in its comments that only 4.4 million people subscribe to satellite broadband, despite claims by providers that the service has virtually universal availability.

NTCA, headquartered in Arlington, Va., filed its reply comments with the FCC Wednesday. The trade group represents more than 850 community-based telecommunications companies with the goal of expanding broadband access and closing the digital divide in rural America.

NTCA said that satellite internet cannot support simultaneous usage by every potential subscriber. The association stated that the inability to provide access to every subscriber at once could complicate the consumer experience.

“The FCC itself has noted that, by definition, satellite capacity limits constrain the experience of subscribers,” Seidemann said. “Taking no account of the consumer experience would frustrate a full and complete analysis of whether advanced telecommunications capability is being deployed to all Americans.”

The position that satellite internet systems could not support simultaneous use by every potential subscriber was recognized by Elon Musk’s SpaceX company, according to NTCA’s filing.

Starlink, with about 6,500 satellites operational in low Earth orbit, has about 4 million subscribers globally. It has emerged as the broadband access technology of choice on airplanes, cruise ships, and in wireless dead zones. In weather crises, Starlink terminals have kept first responders and hurricane victims connected. 

In October, Maine announced it would provide a free Starlink terminal to 9,000 of its hardest-to-reach residents and businesses.