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Expanded Rural Internet Access in Montana Secured by Starlink for $119 Million

Montana Directs Significant Federal Broadband Funds Toward Satellite Providers, Allocating $119 Million to Starlink by SpaceX for Connecting 20,000 Underserved Areas - According to PCMag. The financing originates from the U.S. Broadband Equity, Access, and Deployment (BEAD) program, targeting...

Expansion of Rural Internet in Montana Secured with $119 Million Starlink Funding
Expansion of Rural Internet in Montana Secured with $119 Million Starlink Funding

Montana's Broadband Equity, Access, and Deployment (BEAD) program, designed to expand high-speed internet access across rural America, is making headlines with its unique approach. Unlike other states, Montana is heavily relying on satellite internet providers, such as SpaceX's Starlink and Amazon's Project Kuiper, to cover over 65% of the locations in the program.

SpaceX's Starlink, which recently surpassed 7 million users worldwide, has been awarded $119 million by Montana to connect 20,000 underserved locations. Starlink will handle more than 28% of the locations in Montana's BEAD program, making it a significant player in the state's digital revolution.

Amazon's Project Kuiper, on the other hand, has been awarded $26 million to cover nearly 37% of the locations in Montana's BEAD program. This move comes as SpaceX has protested Virginia's $613 million BEAD proposal earlier this month, urging the Commerce Department to intervene in the plans.

Critics argue that fiber is a better long-term solution, offering faster, congestion-free gigabit speeds. However, Montana's approach is saving over $300 million compared to the original allocation of $629 million. By relying on satellite internet providers, the state is able to connect its rural communities more swiftly and cost-effectively.

Colorado has taken a similar approach to Montana in the BEAD program, with service now live in about 150 countries and Starlink already widely available for purchase across the U.S. SpaceX is working to boost Starlink's capacity to support gigabit internet, further solidifying its position in the satellite internet market.

The agency will need to approve all state BEAD proposals before releasing federal funding. As the approvals process continues, it remains to be seen how other states will approach the BEAD program. Some are remaining far more fiber-heavy in their approach, contrasting Montana's satellite-focused strategy.

The group that prompted SpaceX to revise its BEAD plans in Virginia and Louisiana is the Rural Broadband Alliance. SpaceX has demanded that Virginia and Louisiana revise their BEAD plans, signalling a potential shift towards satellite internet in these states as well.

As the digital divide persists in rural America, Montana's innovative approach to the BEAD program offers a promising solution. With the funding for this project coming from the U.S. Broadband Equity, Access, and Deployment program, the future of rural internet access looks brighter than ever.

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