SpaceX's Starlink obtains $51 million to establish broadband internet connections in 31,000 residences across Ohio
In a significant move towards bridging the digital divide, SpaceX's Starlink has been chosen to serve a substantial portion of underserved locations in Ohio as part of the state's Broadband Equity, Access, and Deployment (BEAD) program. This decision marks the second-largest BEAD allocation Starlink has received so far, following an earlier award of $119 million in Montana to serve 20,000 locations.
Ohio's BEAD proposal saw Starlink covering 41% of all eligible locations, more than any other participating internet service provider. The satellite internet service is required to deliver a minimum of 100Mbps download and 20Mbps upload speeds under the program. While Starlink will provide free hardware to eligible locations, it is not obligated to discount monthly subscriptions.
The state itself, Ohio, has nominated SpaceX's Starlink for $51.6 million in federal subsidies to expand high-speed internet access across the state, although the exact date when this subsidy was granted is not provided in the available search results.
Spectrum, owned by Charter Communications, came in second with 13% coverage in Ohio's BEAD proposal. Fiber providers like Spectrum and AT&T plan to offer gigabit service, but Ohio's cost-focused approach favors satellite services like Starlink, offering near-immediate coverage compared to fiber deployment.
The BEAD program, originally prioritizing fiber deployments, has shifted focus to "technology neutrality" and lower-cost rollouts. This change in approach has allowed Starlink to compete with other internet service providers, including Amazon's Project Kuiper, for contracts in various states.
SpaceX has not been shy in challenging BEAD awards in states like Virginia and Louisiana, arguing that Starlink was unfairly excluded. The company has also asked the Commerce Department to intervene in the BEAD program. However, it's worth noting that Starlink is currently offering discounted Residential plans in eligible states and 50% off its Standard dish across the U.S.
As SpaceX works on boosting Starlink's speeds to gigabit levels, the service is poised to further solidify its position in the broadband market. In Colorado, the state favored satellite internet over fiber but leaned more heavily on Amazon's Starlink rival, Project Kuiper.
In conclusion, Starlink's selection in Ohio's BEAD program represents a significant step forward in bringing high-speed internet to underserved areas. With its cost-effective and near-immediate deployment capabilities, Starlink is well-positioned to play a key role in bridging the digital divide across the United States.
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