20% of US Super Broadband Subsidy Projects Adopt Satellite Networkingon Site Selection

According to the tracking data of the Broadband Equity, Access and Deployment (BEAD) plan proposal on the Connected Nation website, out of the 3.36 million identified site allocation options, approximately 67.1% will use fiber optic connections. 20.5% will choose low orbit satellite connections. And the remaining portion will use fixed wireless access (10%) and coaxial cables (2.4%). This data covers 51 out of 56 final proposals and may cover a total of 4.2 million sites.

Although the fiber optic industry is disappointed with the large amount of subsidies flowing into satellite networking, the Fiber Broadband Association points out that since the launch of the BEAD program four years ago. Also, the fiber optic sector has received significant private investment. According to the association’s data, out of the 15.2 million unserved and underserved areas planned to be connected under the Infrastructure Investment and Employment Act. The fiber optic industry has addressed 11 million, leaving only about 4.2 million covered by the BEAD program.

It is worth noting that satellite operators SpaceX and Amazon Kuiper will undertake 20.5% of the site selection. Although Kuiper has not yet established a commercial satellite network, according to BEAD regulations, suppliers can meet the requirements by providing services within four years after receiving funding.

At the recent Ookla Webinar, broadband leaders from Hawaii and Maine shared their experiences in satellite applications. David Bresnahan, Senior Manager of Funding and Projects at the Maine Connection Authority, stated that the state will launch the “Instant Work Network” program in early 2024, providing free Starlink devices and installation services to 8800 households without broadband during the preparation period of the BEAD program. 14.9% (approximately 3500 households) of the final proposal in the state will use satellite connectivity for site selection.

Hawaii plans to deploy fiber optic cables for 5700 households in the BEAD proposal, with 1300 households using satellite connectivity, and has already awarded satellite services to Amazon Kuiper. Jaren Tengan, the broadband coordinator for the Hawaii Home Department, stated that the state’s rural areas are scattered across multiple islands and have volcanic rock geology. This makes the fiber optic deployment difficult.

Summit Ridge Group President Armand Musey pointed out that satellite connectivity has capacity limitations. And it is only suitable for areas with weak ground network coverage and low usage density. For remote areas such as Hawaii, Maine, and Alaska, satellites are the most economically viable option.

In actual deployment, satellite broadband requires clear visibility between the equipment and the satellite. Bresnahan pointed out based on Maine experience that the Starlink basic kit requires a 110 degree open sky to ensure stable connectivity throughout the day, and dense tree canopies and rainy or snowy weather can also affect the signal. Musey added that although antenna technology and processing capabilities have improved, the Ku band used by SpaceX is more resilient in adverse weather conditions than the Ka band used by Kuiper. As the satellite constellation expands, both operators will establish redundant systems to enhance stability.