Amazon, SpaceX Awarded Millions in Pennsylvania broadband Funding Amid Reliability Concerns
HARRISBURG, PA – Pennsylvania has allocated a portion of its $793 million in federal broadband funding too Amazon and SpaceX, sparking debate over the reliability of service these companies can deliver, notably in reaching underserved areas. The state’s plan, awaiting approval from the U.S. Department of Commerce, aims to expand high-speed internet access across the commonwealth.
According to a recent analysis by Ookla, a company specializing in internet speed measurements, only 17.4% of SpaceX’s Starlink users in the first three months of the year consistently achieved speeds meeting the federal definition of broadband. though, Ookla’s analysis also noted significant improvements in median upload and download speeds over the past several years.
Concerns center on potential congestion as subscriber numbers grow. Research suggests adding more customers can lead to slower speeds for existing users. “if four out of five subscribers aren’t getting broadband speeds today, what do people think is going to happen when you add in hundreds of thousands of new users?” questioned Sascha Meinrath, a professor at Penn State and coauthor of a recent study questioning SpaceX’s ability to meet program requirements. “The problem gets far worse the more people you put onto the infrastructure.”
SpaceX maintains its service meets program requirements.A company spokesperson told Spotlight PA via email that median download speeds, even during peak demand as of July 2025, exceed the necesary thresholds, and the company is committed to “ensuring the overall quality of service for new and existing customers continually improves.”
The U.S. Department of Commerce has 90 days to review Pennsylvania’s plan. The agency has indicated it may reject grant awards deemed “excessive” and reports suggest it is indeed already prompting states to rebid awards in certain areas, though the agency has not publicly commented on this process.
Pennsylvania’s broadband funding comes from the federal Broadband Equity, Access, and Deployment (BEAD) program, designed to close the digital divide and ensure universal access to reliable, affordable high-speed internet.
