US Commerce Secretary Urges Starlink Priority for Rural Internet, Sparks Debate Over Reliability

March 26, 2025
US Commerce Secretary Urges Starlink Priority for Rural Internet, Sparks Debate Over Reliability
  • Some observers view Lutnick's comments as a favor to Elon Musk, especially in light of the lack of significant technological advancements in Starlink's service.

  • Starlink's utility in emergencies was demonstrated when the FCC temporarily approved its Direct-to-Cell satellite service to assist Hurricane Helene victims.

  • US Commerce Secretary Howard Lutnick has called on government leaders to prioritize SpaceX's Starlink satellite internet service, particularly for rural areas.

  • Revised funding criteria could enable Starlink to secure between $10 billion to $20 billion in government support, as reported by the Wall Street Journal.

  • The BEAD program, initiated by the Biden administration to expand high-speed broadband in rural areas, has faced criticism for its slow service deployment despite a $42 billion funding allocation.

  • Evan Feinman, the former head of the rural broadband program, criticized Lutnick's directive for pushing satellite internet adoption without considering its reliability compared to fiber optics.

  • Feinman has raised concerns about Starlink's service speed and reliability compared to fiber optic broadband, arguing that it may leave rural Americans with inferior internet access.

  • Lutnick emphasized the significance of innovative technologies like Starlink in bridging the digital divide and improving connectivity.

  • Lutnick's support for Starlink reflects a broader trend of Musk's influence in the White House, which has historically favored his business interests.

  • Starlink is poised to benefit from new funding opportunities, especially in regions where traditional internet connections are not economically viable.

  • However, the Biden administration's Federal Communications Commission (FCC) previously denied SpaceX nearly $900 million in subsidies due to concerns over Starlink's speed inadequacies.

  • In addition to its broadband initiatives, SpaceX is collaborating with the FAA to enhance air traffic control operations, testing Starlink terminals despite existing contracts with Verizon.

Summary based on 5 sources


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