One of the satellites of SpaceX, an aerospace provider founded by Elon Musk’s satellites is making big strides. Starlink, the satellite internet service owned by SpaceX, is busy taking on big moves that involve the United States government. The service provider is on the verge of forming alliances with the federal government by working on a big expensive program. However, by forming part of this program, the service provider is also making a significant impact in the rural areas of the United States.
Starlink’s alliance with the Federal Government
It has been in the news that there might come an unexpected collaboration between Elon Musk’s Starlink and the United States Government – but many did not think this would occur so soon. Previously, the rules of the program this internet service will now be used for, excluded satellite service providers. It only focused on using Fiber-optic services because of the rules of the program: Broadband Equity, Access, and Deployment or in short BEAD, which only provided preference to Fiber-optic services.
Additionally, BEAD excluded internet services like Starlink – that transmits high-speed online access generated from its satellites in low-earth orbit to terminals on the ground. According to an announcement that was made last week by the Commerce Department, that manages the program, BEAD is now open to all forms of internet connectivity.
Transforming the internet industry
The Commerce Department is busy addressing certain aspects to ensure changes are being made. For example, the department is busy getting rid of the Biden Administration requirements, as stated by the Commerce secretary, Howard Lutnick. He further alluded to the fact that the department is busy revamping the BEAD program – to allow it to take a more tech-neutral approach.
The reason for this is because this type of approach is bureaucratically driven by results – to ensure that states have the ability to provide internet access for the lowest cost. Lutnick did not indicate whether the department will provide grant funds to Starlink for this program, but one can only imagine if they talk about being more tech neutral.
Moreover, Lutnick further complained that the BEAD program that was created in 2021, did not connect any homes to the internet. However, it has been stated that the Biden Administration distributed $20 billion in September 2024, to stated and territories that are situated under this program. Still, it did not make any announcements on any homes that has been connected to the internet.
Additionally, whatever the argument is for using Starlink satellite service rather than Fiber-optics, the change would seem contrary to efforts made by the Trump administration. Also, to those efforts of the Department of Government Efficiency, where Musk is the head — and it plan is to cut government spending and halt federal grant programs which are already approved by Congress.
The Federal Government’s Funding Approach
It has been stated by both Elon Musk and President Donald Trump, that the United States Postal Service and Amtrak should be privatised and changed into for-profit organisations. They referred to these services as money-losing government services and that these changes could save money for taxpayers and improve services as well. On Wednesday at an investors’ conference, Elon Musk said, that he thinks that anything that could possibly be privatised should be privatised
However, the same government agencies that announced staffing and budget cuts, are now focused on getting into a new contract with the businesses of Elon Musk. For example, last week the Federal Aviation Administration (FAA) confirmed that it is testing three Starlink terminals to establish if Starlink can be utilised to improve and upgrade the communication system for the nation’s air traffic control system.