SpaceX Letter to States Reinforces Push to Rework BEAD Rules

Late Monday we posted about how Starlink doesn’t want to follow the rules of the road when it comes to BEAD. In a legal rider sent to numerous states, Starlink is trying to redefine how the rules, the NOFO, and the June 6 guidance apply to satellite providers. 

Since then, we’ve gotten our hands on SpaceX’s introductory letter (below) to the state rider. It’s meant to explain the rider, but it mostly confirms what the rider already suggested: Starlink thinks BEAD, as written, doesn’t really work for them.

Monday, I ran down some of the implications here: Rider from Starlink Caveats Promised Service and Demands Special Dispensation.

Starlink has gone so far as saying that if a BSL tries their service and then bails after a short period, that location is still counted as served for the full performance period. Starlink even wants to be paid for BSLs already subscribed prior to the award. And, of course, they want 50% up front, paid upon certification that they can offer service rather than tied to subscriber milestones.

The letter says that unless a number of issues are addressed, BEAD participation by LEO providers could become “untenable.” It also argues that BEAD’s core obligations should be interpreted very differently for satellite service. Capacity reservations, they say, shouldn’t be documented or pre-committed in any traditional way. If performance testing shows customers are getting service, that should be enough proof that capacity was reserved. 

Aggregating the news since, we wanted to share multiple perspectives on the giant poop-sandwich Starlink is trying to serve States.

• Benton Institute first with intro letter: SpaceX Seeks Exemption from Certain BEAD Requirements

• STATESCOOP included intro letter: SpaceX asks for exemptions to BEAD performance and reporting requirements

• Broadband Breakfast: SpaceX Doesn’t Want BEAD Payments Tied to Subscriber Milestones

• FIERCE Network: SpaceX now wants to alter BEAD performance requirements

• Ars Technica: SpaceX sends list of demands to US states giving broadband grants to Starlink

• COMMUNICATIONS TODAY: Starlink asks to ease BEAD rules after winning most rural broadband locations

• Broadband Communities: Is a BEAD conflict brewing between NTIA and Starlink? - Broadband Communities

We were also told that our coverage of the rider was circulating on The Hill Tuesday. 

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Views expressed are the author’s own and do not necessarily represent the official position of broadband.io or its affiliates. For questions, contact Doug at doug@broadbandmarketers.com.