Image: Starlink
Montana has become the latest U.S. state to direct a major portion of its federal broadband funding toward satellite internet providers, awarding SpaceX’s Starlink $119 million to connect 20,000 underserved locations — reports PCMag.
The funds come from the U.S. Broadband Equity, Access, and Deployment (BEAD) program, which aims to expand high-speed internet access across rural America. Montana’s BEAD program will cover over 70,000 locations, with satellite providers receiving a surprising majority of the support. Starlink will handle more than 28% of the locations, while Amazon’s Project Kuiper has been awarded $26 million to cover nearly 37%.
In total, about 65% of Montana’s BEAD sites will be served by satellite, which is far higher than in most states. By relying heavily on satellite rather than fiber builds, Montana says it only needs $308 million to cover its underserved communities — “saving over $300 million” compared to the $629 million it was originally allocated. Colorado has taken a similar approach, while other states remain far more fiber-heavy.
For example, Oklahoma this week awarded Starlink just a single site, while Amazon’s Kuiper secured more than 4,200. In Virginia, SpaceX protested the state’s $613 million BEAD proposal earlier this month, calling it a “massive waste of federal taxpayer money” for prioritizing costly fiber installations over its satellite service.
The company has also demanded that both Virginia and Louisiana revise their BEAD plans and even urged the Commerce Department to intervene. While the agency has yet to respond, it will ultimately need to approve all state BEAD proposals before any federal funding is released.
Critics argue fiber is a better long-term solution, offering faster, congestion-free gigabit speeds, while noting that Starlink is already widely available for purchase across the U.S. Still, SpaceX is working to boost Starlink’s capacity to support gigabit internet and sees BEAD funding as key to scaling access in rural regions.
All of this comes as Starlink recently celebrated surpassing 7 million users worldwide, with service now live in about 150 countries.
