politics

SpaceX sends list of demands to US states giving broadband grants to Starlink

SpaceX won’t make specific promises on Starlink network capacity or subscribers.

SpaceX sends list of demands to US states giving broadband grants to Starlink

TL;DR

  • SpaceX is requesting grant terms that guarantee payment even if residents don't subscribe to Starlink service.
  • The company wants to avoid holding large portions of network capacity for subsidized areas, opting for dynamic allocation.
  • SpaceX aims to be free from responsibility for ensuring correct installation of Starlink equipment at customer locations.
  • These demands are proposed as a rider for grants distributed under the US government's Broadband Equity, Access, and Deployment (BEAD) program.
  • Critics, like Drew Garner of the Benton Institute, argue these concessions limit Starlink's performance obligations and highlight issues with how the BEAD program rules were rewritten.
  • SpaceX states that requirements related to labor, contractors, and procurement are inapplicable to them due to the nature of their service.
  • The proposed rider defines a 'standard installation' as mailing equipment to a subscriber, with no obligation for professional installation.
  • SpaceX also requests to be paid 50 percent of grant funds upon certifying service capability within 10 business days, with the remainder distributed quarterly.