US Government Earmarks $45 Billion for Broadband, Favors Fiber Projects

Emir Halilovic, Principal Analyst

Summary Bullets:

  • The latest US government broadband subsidy program could potentially transform the broadband market in rural and underserved areas, but funding will need to pass through state governments, which comes with strings attached.
  • Fiber buildouts get priority treatment in the latest round of funding, potentially changing technology preferences in the US broadband market.

On May 13, 2022, the US government announced funding for three broadband subsidization programs, totaling $45 billion, aimed to bring internet to all American households and bridge the digital divide. The program will be administered through the National Telecommunications and Information Administration (NTIA), part of the US Department of Commerce, and distributed through state governments. The biggest chunk of the provided funding goes into the Broadband Equity, Access, and Deployment (BEAD) program. BEAD funding focuses on broadband projects in unserved and underserved areas, as well as on planning and capacity-building for program administration in state offices. Program implementation will be led by the Federal Communications Commission’s (FCC) broadband coverage maps for identifying unserved and underserved areas (i.e., those with no access to 25 Mbps downlink/3 Mbps uplink and 100 Mbps downlink/20 Mbps uplink services, respectively).

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Starlink’s Role in the Russia-Ukraine War Could Inspire Further LEO Investment

Emir Halilovic, Principal Analyst

Summary Bullets:

  • At the start of Russia’s war in Ukraine, Starlink – with ample financial support from the US and its allies – supplied terminals and active service in the country.
  • Starlink’s service has proven unparalleled resilience, giving a new set of arguments for further development of low earth orbit (LEO) satellite constellations.

Since the beginning of the all-out Russian invasion of Ukraine, Starlink has consistently proven its worth as a critical communications medium. The service has been proven resilient, both in its design and operations. The service requires no ground-based infrastructure aside from a user terminal, allowing users to set up internet access quickly. It circumvents terrestrial infrastructure, which has not only been damaged by the ongoing warfare, but has also crumbled under targeted Russian cyber and physical attacks and sabotage. This part of its performance was expected.

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