{"id":68498,"date":"2025-08-14T07:50:06","date_gmt":"2025-08-14T07:50:06","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/68498\/"},"modified":"2025-08-14T07:50:06","modified_gmt":"2025-08-14T07:50:06","slug":"spacex-warns-virginias-internet-program-will-be-a-massive-waste-of-federal-taxpayer-money-for-overlooking-starlink","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/68498\/","title":{"rendered":"SpaceX Warns Virginia\u2019s Internet Program Will Be A \u2018Massive Waste of Federal Taxpayer Money\u2019 For Overlooking Starlink"},"content":{"rendered":"<p>Virginia chose the Elon Musk-headed company for only 5,579 of the total 133,000 locations selected for subsidized broadband installations.<\/p>\n<p>SpaceX warned on Wednesday that Virginia is planning to spend over ten times what was required for its proposed high-speed internet access program by not sharing a large chunk of the incentives for Starlink.<\/p>\n<p>In a letter addressed to the Virginia Department of Housing and Community Development, SpaceX said that the final proposal for the program was a \u201cmassive waste of federal taxpayer money,\u201d before noting that SpaceX could have served virtually every eligible household at $60 million, compared with the $613 million in expenditure proposed by the Commonwealth.<\/p>\n<p>\u201cSimply put, Virginia has put its heavy thumb on the scale in favor of expensive, slow-to-build fiber bias over speedy, low-cost, and technology-neutral competition,\u201d SpaceX wrote in the latter as Virginia chose the Elon Musk-headed company for only 5,579 of the total 133,000 locations selected for subsidized broadband installations.<\/p>\n<p>The program at the center of the controversy is called the Broadband Equity Access and Deployment (BEAD), an $42.5 billion initiative of the Biden administration to enhance internet access for Americans across the country. The Trump administration tweaked the program to shift from fibre-based broadband to \u2018technology neutrality\u2019 and paved the way for satellite broadband providers such as Starlink and fixed wireless service providers.<\/p>\n<p>Retail sentiment on Stocktwits about <a href=\"https:\/\/stocktwits.com\/symbol\/ASTS\" rel=\"nofollow noopener\" target=\"_blank\">AST SpaceMobile<\/a> (ASTS), another satellite broadband provider, was in the \u2018bullish\u2019 territory at the time of writing.<\/p>\n<p>SpaceX further alleged that, according to Virginia\u2019s current plan, Starlink will receive $3.2 million in funding, which translates to approximately $584 per site, while faster fiber installations can cost around $6,000 to $8,000 per site. The company said that Virginia \u201cfailed to observe technology neutrality,\u201d before adding that Starlink could provide faster broadband and \u201cat one-tenth of the cost.\u201d<\/p>\n<p>According to Virginia\u2019s proposal, the state factored in several factors, including the capability to provide high-speed broadband under heavy tree cover, which could have contributed to the decision. Starlink, however, upgraded its system recently to provide better coverage under tree cover.<\/p>\n<p>The final decision will be made by the Commerce Ministry, which will approve the funding.<\/p>\n<p>\u201cThese efforts will not delay BEAD households from receiving much-needed connectivity but will accelerate the program by prioritizing lowest-cost awards to providers like SpaceX that are already deployed and are ready to enroll customers tomorrow, instead of waiting years for terrestrial deployments to materialize,\u201d the company said.<\/p>\n<p>Also See: <a href=\"https:\/\/stocktwits.com\/news-articles\/markets\/equity\/space-x-rocket-lab-set-to-benefit-as-trump-eases-rocket-launch-restrictions\/chsRIGGRda9\" rel=\"nofollow noopener\" target=\"_blank\">SpaceX, Rocket Lab Set To Benefit As Trump Eases Rocket Launch Restrictions<\/a><\/p>\n<p>Get the daily email that keeps you tuned in and makes markets fun again.<\/p>\n<p>For updates and corrections, email newsroom[at]stocktwits[dot]com.<\/p>\n","protected":false},"excerpt":{"rendered":"Virginia chose the Elon Musk-headed company for only 5,579 of the total 133,000 locations selected for subsidized broadband&hellip;\n","protected":false},"author":2,"featured_media":68499,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[43237,43238,49,48,250,43239,244,7829,6888,248,61,43236],"class_list":["post-68498","post","type-post","status-publish","format-standard","has-post-thumbnail","category-internet","tag-bead-program","tag-broadband-equity-access-and-deployment","tag-ca","tag-canada","tag-elon-musk","tag-federal-broadband-funding","tag-internet","tag-satellite-internet","tag-spacex","tag-starlink","tag-technology","tag-virginia-broadband-program"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/68498","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=68498"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/68498\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/68499"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=68498"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=68498"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=68498"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}