Image: Starlink
SpaceX is pushing back against Colorado’s plan to distribute $400 million in federal broadband funding, arguing the state is prioritizing costly fiber projects over more affordable satellite alternatives like Starlink.
The money comes from the U.S. Broadband Equity, Access, and Deployment (BEAD) program, designed to expand high-speed internet access across underserved rural areas. In a letter to the Colorado Broadband Office, SpaceX criticized the proposal for disproportionately allocating funds to fiber installations that can cost more than $10,000 per location.
“Colorado proposes awards covering 24% of its locations at average costs exceeding $10,000, over seven times the amount offered by SpaceX,” the company wrote. SpaceX added: “NTIA should carefully review Colorado’s proposal, reject unnecessary and wasteful spending, and require Colorado to recompete these locations to give the Benefit of the Bargain back to the taxpayer and to bring internet to those who need it in months, not years.”
Colorado has earmarked about 48% of its broadband expansion plan for fiber, which delivers gigabit speeds but is expensive to deploy, particularly in remote areas. According to PCMag, fiber awards represent the bulk of the state’s spending, while satellite providers were selected for roughly half of the underserved locations but have only been allocated $34.5 million of the $400 million budget. Most of that went to Amazon’s Project Kuiper, which received $25 million to cover 42,000+ locations. Starlink, in comparison, was awarded just $9 million for 5,400 locations.
SpaceX argues its service offers a more cost-effective solution. The company says its Starlink bids averaged $1,700 per location, compared to $10,000+ for fiber. Project Kuiper’s average came in even lower, at $600 per location.
This isn’t the first time SpaceX has clashed with a state over its broadband expansion plan. Earlier this month, it blasted Virginia’s $613 million BEAD plan as a “massive waste of federal taxpayer money” for favoring fiber. However, the company recently scored a win in Montana, securing $119 million in funding to connect 20,000 underserved locations with Starlink.
The National Telecommunications and Information Administration (NTIA) must approve Colorado’s proposal before the funds are distributed. SpaceX is urging the agency to step in, citing unnecessary costs and delays associated with fiber deployment.
