Starlink Opposes Virginia’s Fiber Internet Expansion Plan
SpaceX, the operator of Starlink, is challenging Virginia’s plan to expand fiber Internet access using federal grant funding. While the company is already set to receive over $3 million in grants, it is seeking $60 million to cover more households.
The dispute stems from changes to the $42 billion Broadband Equity, Access, and Deployment (BEAD) program. The Biden administration instructed states to prioritize fiber for future-proof networks, while the Trump administration revised rules to require a “technology-neutral” approach. These opposing guidelines have created tension over how states allocate funds.
Fiber Versus Satellite Approaches
Virginia’s proposal directs most funding toward fiber and wireless providers while allocating a smaller share to satellite services. The plan would provide $613.3 million to connect 133,472 locations. Local provider All Points Broadband is the largest beneficiary, with $171.4 million, while Comcast is set to receive $146.4 million. Amazon’s Kuiper satellite service also secured $4.46 million in funding.
SpaceX argues that satellite technology should be considered on equal footing with fiber, especially in remote or difficult-to-reach areas. Starlink has emphasized that it already serves many of the same regions included in Virginia’s fiber plan. However, Virginia’s housing and community development department justified its decisions by pointing to issues such as rugged terrain, dense tree cover, and the scalability of different technologies.
Balancing Cost, Capacity, and Coverage
The state’s review process included cost per location, scalability, and long-term service reliability. Officials noted that satellite and fixed wireless systems can experience latency, reliability challenges, and limited network capacity when compared with fiber. They also expressed concern that guaranteeing satellite service in one area could affect availability in other regions.
Despite objections, Virginia maintained that its proposal balances performance, coverage, and value for taxpayers. The state prioritized solutions capable of maintaining required speeds across diverse geography while ensuring existing customers are not negatively impacted. The outcome of this dispute will depend on federal review, which could reshape how future broadband grants are distributed.
