The future of America’s broadband is at a crossroads. Commerce Secretary Lutnick last week stated that the Broadband Equity, Access, and Deployment (BEAD) program is in “dire need of a readjustment.” With his call for a “tech-neutral” approach, all signs point to a shift away from fiber and towards satellite. Indeed, the Wall Street Journal estimates as much as $10-20 billion in BEAD funding could be redirected from fiber deployments toward Low Earth Orbit (LEO) satellite providers like Starlink.

States across the county have already developed plans to meet the needs of residents and businesses using the mix of technologies that will bring the fastest, most robust service at the best long-term value for taxpayers. In Louisiana (which is waiting for the greenlight to move forward) the composition is 95% fiber, 3% wireless/cable, and 2% satellite. If forced to go back to the drawing board, states could be delayed by a year plus and we risk passing on a generational opportunity to equip rural communities with broadband fit for the future.

Fiber vs. LEO

BEAD was designed to fund infrastructure that will serve communities not just for the next few years, but for decades from now. That’s why the program has prioritized fiber, which provides unmatched performance and durability.

Fiber: A Future-Proof Investment

• Speed & Capacity: Fiber-optic networks deliver symmetrical gigabit speeds with virtually unlimited capacity, making them the best option for broadband expansion.
• Reliability: Unlike satellite and fixed wireless, fiber is not affected by weather conditions or line-of-sight obstacles.
• Longevity: Once installed, fiber can serve communities for generations with lower upgrade costs.
• Greater Competition: Models like open-access networks encourage competition among providers, driving down costs and improving service quality.
• Economic Development: In addition to attracting businesses and connecting community anchors, high-speed fiber broadband supports local jobs in network maintenance and customer service. Community-ownership models can create new revenue streams to be reinvested locally.
• Essential Infrastructure: Innovations in smart grids, precision agriculture, and municipal services increasingly depend on high-capacity fiber connectivity.

Low Earth Orbit (LEO) Satellite Broadband

• Limited Capacity: LEO satellites have finite bandwidth. As more users come online, network congestion increases, leading to slower speeds and inconsistent performance.
• High Latency in Crowded Networks: While LEO satellites have lower latency than traditional geostationary satellites, they still lag behind fiber and struggle with real-time applications like gaming, remote surgery, or high-definition video calls.
• Centralized Network Control: Unlike fiber, which can be deployed and operated by munis, co-ops, or local providers, satellite broadband is controlled by a single private entity. A company decision, whether due to policy, economics, or external pressures, could disrupt access. Relying on a network owned by one company carries significant risks to service resilience.
• Affordability Barriers: The cost of Starlink service is inaccessible for many households, with high upfront equipment costs and subscription fees. Even if subsidized by BEAD short-term, sustainability remains a challenge.
• Short Lifespan, High Costs: LEO satellites last only 5–7 years, meaning that while they might seem cheaper upfront, the long-term costs of replacing satellites far exceed the cost of fiber maintenance and upgrades.

The Need for Sustainable, Community-Centric Investment

Proponents of this shift argue that it provides better “taxpayer value.” But while switching from fiber to satellite may reduce upfront costs, it’s like replacing a bridge with a ferry service — cheaper in the short term, but less effective and far more costly over the long haul.

Fiber-first doesn’t mean fiber only. Satellite, like wireless, has always been part of the BEAD mix to serve extremely remote areas where the costs of fiber become impractical. Its immediate availability makes it an attractive backup or short term solution. But for most communities, fiber remains the best-performing and most cost-effective long-term technology. That’s why broadband state leaders want to move forward with the plans they’ve already developed.

It’s like replacing a bridge with a ferry service — cheaper in the short term, but less effective and far more costly over the long haul.

BEAD is the best opportunity in decades to accelerate progress on making sure everyone has access to high-quality broadband. To reach its potential and deliver the best long-term value to taxpayers, BEAD funding should continue to prioritize fiber as the most effective, durable infrastructure to connect America.

Whatever happens, more capital is needed to expand high-speed internet to every corner of every county. Public funding alone won’t finish the job (not even close). Financing from impact investors and philanthropic funders will be vital to support networks that are meeting local needs. At Connect Humanity, we’re working to catalyze capital that supports local ISPs and community-centric networks to expand and sustain broadband infrastructure. If your organization can be part of the solution, get in touch.