Texas Opens Funding for Starlink, LEO Rivals

WASHINGTON, Jan. 21, 2025 – Texas is the next state creating grant programs to deliver broadband via low Earth orbit satellites.

The Texas Broadband Development Office announced Friday that it is preparing to use $30 million from the state’s $1.5 billion Broadband Infrastructure Fund to support the deployment of LEO broadband in underserved areas of Texas. The BDO said it will release more information for LEO applicants this spring.

Texas Comptroller Glenn Hegar said Friday, “This grant program will leverage the power of LEO satellite technology to connect unserved communities and ensure Texans in remote areas of the state have the opportunity to thrive in the digital age sooner than traditional programs may allow.”

Starlink is apparently the only LEO satellite provider that has the resources to help Texas reach its broadband goals, as its competitors are too far behind the ball to provide realistic competition to the company. Starlink has about 5 million Internet users globally and 6,700 operational LEO satellites, according to SpaceX CEO Gwynne Shotwell. 

Starlink’s closest competitor, Amazon’s Project Kuiper, plans to launch more than 3,200 satellites over the next few years; however, the project is still far from being available to rural communities. With zero LEO satellites currently active for subscribers, it will likely not be available to the public by Texas’ target start date for the grant program.

Hegar and the Texas BDO hope that the LEO program will bridge the digital divide in the state in the most efficient way possible, without spending too much funding on building infrastructure that would take several years to complete.