A leaked rider circulated among state broadband offices alleges that Starlink is seeking to charge 50% upfront for BEAD-enabled service locations (BSLs) and would not be required to increase capacity until requested by BSLs. The document, described as confidential by sources including Doug Adams of broadband.io, has sparked discussion about a potential clash with NTIA guidance.
NTIA guidance issued on June 6 directs BEAD funds to be used for cost‑effective broadband delivery and to encourage scalable capacity, a framework some see as at odds with rider demands that could delay capacity expansion until a later stage.
Starlink, a SpaceX subsidiary, has already secured a substantial share of BEAD funding, with Connected Nation’s BEAD tracker listing awards totaling more than $733 million to the company so far. The BEAD program has shifted attention toward cost‑effective options, including low‑Earth orbit satellite connectivity, as part of a broader push to reach serviceable locations more quickly.
The leaked rider purportedly requires that Starlink be paid in arrears for BSLs already subscribed and reserves the option to treat any BSL that cancels service as “served,” a clause critics say could complicate accountability and funding flows if deployed broadly.
State broadband officials have reportedly been told by NTIA not to sign such riders, adding to a brewing tension between the federal program’s intent and the terms Starlink may seek. The document’s confidential status and the lack of independent confirmation leave open questions about its authenticity and potential impact on BEAD awards.
Observers note the episode highlights the tension in BEAD’s push toward diverse, cost‑effective connectivity options, including satellite services, and the ongoing negotiations over performance and funding mechanisms as states accelerate broadband deployments under federal guidelines.
