Starlink demands grant money from states even when residents don’t buy service

SpaceX is pushing state governments for a new agreement that would allow its Starlink service to access federal grants, even in cases where local residents do not subscribe to the broadband service. The aerospace company has indicated that it will supply all necessary equipment to those who request the service at no initial cost, effectively removing the hardware fee typically associated with Starlink. However, SpaceX has not committed to offering lower monthly rates for users in these subsidized areas. The company has stated that it will provide broadband services for $80 or less monthly, exclusive of taxes and fees, targeted at low-income households. In comparison, standard Starlink residential pricing ranges from $50 to $120 per month. Furthermore, SpaceX's proposal includes stipulations that would ensure government payments continue, even if the company does not allocate a significant portion of its network capacity for residents in these designated areas. The company would also not be liable for the proper installation of Starlink equipment at customer locations. The details of this proposal were outlined in a letter sent to state broadband offices, which was later made public by Broadband.io and the Benton Institute for Broadband & Society. In its communication, SpaceX contended that the allocation of grant money should not hinge on the purchasing choices of residents. The company emphasized that it would not leave large segments of its capacity unused to meet the needs of residents in subsidized areas, opting instead to dynamically manage capacity based on demand. This proposed rider is intended to be part of grants provided through the US government's Broadband Equity, Access, and Deployment (BEAD) program, which was established by Congress under a law enacted in 2021 that allocated over $42 billion to enhance broadband services in underserved regions.