Tom Stroup: Under New BEAD Reforms, Satellite Connectivity Deserves Equal Consideration

Earlier this month, the Department of Commerce’s National Telecommunications and Information Administration issued a Policy Notice instituting critical reforms to the Broadband Equity, Access, and Deployment program. These changes would remove rules favoring a specific broadband technology and prioritize cost per location to ensure the funding provided by the program connects the largest number of people without access to broadband service today.

The Satellite Industry Association (SIA) supports adoption of a technology-neutral approach to allow U.S. taxpayers to obtain the greatest return on their investment while efficiently addressing the digital divide faced by millions of unconnected Americans.

Unfortunately, with the release of the new policies, advocates for the fiber industry once again are arguing for anticompetitive policies that would exclude competitive technologies from eligibility for funding.

Misleading characterizing of satellite as inferior

The misleading characterization of satellite broadband as inferior to fiber optics threatens to waste taxpayer dollars and delay universal connectivity. This narrative exists not because of technological limitations but because financial incentives reward denigrating competing solutions.

Let’s acknowledge an undisputed truth: fiber delivers exceptional performance. This Maserati like performance comes with significant drawbacks, however, including prohibitive deployment costs, years-long construction timelines and physical limitations that make connecting the entire country financially impossible. Research indicates bridging America’s digital divide exclusively with fiber would require well over $200 billion, well over $200 billion or approximately five times the currently available funding.

Satellite broadband offers compelling advantages that complement, rather than compete with, fiber’s strengths. First, satellite connectivity provides virtually 100% coverage across the United States right now, not years from now. Multiple companies currently offer this service, creating healthy competition that drives innovation and consumer choice.

Fiber advocates argue that it is the most reliable technology, but many in places that have lost internet service for weeks such as western North Carolina would disagree. Satellite systems offer remarkable resilience due to the location of its infrastructure. In comparison, fiber networks require physical repairs when damaged and are subject to cuts, intentional and accidental incidents that occur thousands of times each year and can take days or weeks to repair. And, with increasing catastrophic weather events, users of fiber systems can anticipate disruptions similar to those impacted by Hurricane Helene.

Both LEO and GEO satellite systems offer download speeds exceeding 150 Mbps

Critics also frequently misrepresent satellite performance capabilities. Both LEO and GEO satellite systems offer download speeds exceeding 150 Mbps. And, a point often lost in all the discussions about speeds is that even baseline plans offering 25 * 3 Mbps support simultaneous 4K streaming, group video calls and online gaming for an entire household, regardless of whether it is provided by satellite, fixed wireless or other non-wireline-based technologies.

Fiber supporters also argue that it provides high upload as well as download speeds. The “symmetrical speeds” argument against satellite and other technologies ignores actual internet usage patterns. Most consumers require significantly more download than upload capacity — making asymmetrical connections perfectly suited for typical household needs.

Regarding latency, satellite connections effectively support web browsing, email, streaming entertainment, social media and remote communications applications. Independent analysis from HighSpeedInternet.com confirms satellite works for most interactive and multiplayer gaming, often performing comparably to other connection types. This is why we would prefer that all satellite broadband systems be eligible for the BEAD program.

Financially, satellite internet remains competitive with alternative technologies. Monthly plans start at $49.99, with premium unlimited data plans priced similarly to comparable terrestrial options. According to CNET, Americans pay an average of $78 monthly for internet service — placing satellite squarely within the market’s typical price range.

Some critics point to the shorter lifespan of low-Earth-orbit (LEO) satellites as a disadvantage. This argument overlooks the fact that dramatically lower manufacturing and launch costs allow operators to continuously upgrade their constellations while remaining cost competitive. Additionally, these satellite networks generate revenue globally, spreading infrastructure costs across an expanding international customer base.

America’s satellite industry includes three direct-to-consumer providers today with more preparing to launch. Other companies partner with local internet providers to reach remote areas, build hybrid 5G/satellite networks or collaborate with mobile carriers to deliver connectivity directly to handsets. This competitive ecosystem drives continuing innovation.

For significant portions of our country, satellite broadband represents key option

We stand at a critical juncture with limited resources to bridge America’s digital divide. Fiber, cable and fixed wireless all excel in specific situations. However, for significant portions of our country, satellite broadband represents the most viable — sometimes the only — option for delivering connectivity within a reasonable timeframe and budget.

Americans without internet access deserve the best service available for their needs today, not vague promises about connections that might arrive years in the future as increasingly expensive deployment plans deplete limited funds. Rather than misrepresenting competing technologies to secure larger funding shares, industry stakeholders should collaborate to ensure every American gains access to broadband regardless of delivery method.

Resilience in the American lexicon has nothing to do with individual technologies. It refers to overlapping technologies including satellite, fixed wireless, and fixed wireline. The only way to achieve true resiliency is with a diversity of sources. Anything short of that is subject to collapse due to weather or other unforeseen events.

Therefore, the most responsible approach to bridging our digital divide combines multiple technologies — including both fiber and satellite connectivity — deploying each where it makes the most sense. For significant portions of our country, multiple satellite providers offer internet services which represent the most viable and, sometimes, the only option for delivering high speed connectivity within a reasonable timeframe and budget. SIA and its members look forward to working with the NTIA and its leadership to help bring high speed connectivity and broadband services to the unconnected, bringing light to the millions of Americans who were facing unnecessary months and years in the digital darkness.

As President of the Satellite Industry Association (SIA), Tom Stroup is the trade association’s lead advocate for regulatory and policy issues of critical importance to SIA’s membership, including spectrum and licensing issues, defense and public safety matters, and export control and international trade issues. He also manages the day-to-day operations of SIA, including member communications, staff leadership and organization of SIA sponsored events. Prior to joining SIA in 2014, Tom was with Shared Spectrum Company (SSC), a leading developer of spectrum intelligence technologies, where he served as CEO, plus for more than a decade, he served as the President of the Personal Communications Industry Association (PCIA). This Expert Opinion is exclusive to Broadband Breakfast.

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