Satellite Providers Underbid Fiber in Tennessee BEAD Funding Applications, Raising Questions About Program Impact & Musk’s Expanding Influence
NASHVILLE, TN – Newly released data from Tennessee’s Broadband Equity, Access, and Deployment (BEAD) program reveals a significant disparity in funding requests between satellite internet providers like SpaceX‘s starlink and Amazon’s Kuiper, and customary fiber optic projects. satellite providers submitted bids for nearly twice the number of eligible locations as fiber companies, while requesting roughly one-tenth of the funding per location, sparking debate over the long-term viability of satellite-based broadband in rural areas and raising concerns about potential political influence.
The average funding request per location from satellite providers was substantially lower. While the exact figures vary, the data suggests a significant cost difference, perhaps impacting the quality and longevity of the proposed infrastructure. The Tennessee data is particularly relevant as Texas,another state where Elon Musk has significantly expanded his business interests,has yet to release comparable cost data for its BEAD applications.
Understanding the BEAD Program & the Shift Towards Satellite
The BEAD program, funded by the Bipartisan infrastructure Law, allocates $42.45 billion to states and territories to expand high-speed internet access to unserved and underserved communities. Originally envisioned as primarily supporting fiber optic deployments, recent rule changes by the National telecommunications and Facts Management (NTIA) have opened the door for satellite internet providers to compete for funding. This shift was driven by arguments that satellite technology can reach the most remote locations where fiber is prohibitively expensive.
Though, critics argue that satellite internet frequently enough suffers from higher latency, data caps, and susceptibility to weather conditions compared to fiber.The lower cost of satellite bids, as evidenced in Tennessee, raises questions about whether these projects can deliver the reliable, high-speed internet access promised by the BEAD program.
Musk’s Growing Footprint in tennessee & Texas – and Questions of Influence
The surge in BEAD applications from SpaceX coincides with a significant expansion of Elon Musk’s business empire in both Tennessee and Texas. In December 2023, Musk relocated the headquarters of SpaceX and his social media platform X from California to Starbase, Texas, a 60-acre facility near Brownsville. This move followed substantial investments in Texas infrastructure, including a proposed Tesla Gigafactory near Austin.In Tennessee, Musk’s ventures are also gaining traction. Last year, Memphis became the home of a massive supercomputer utilized by xAI and grok, Musk’s artificial intelligence companies. the data center, located in the suburb of Arlington, faced scrutiny due to concerns about its environmental impact, specifically related to gas turbine emissions and air pollution permits, as reported by Politico.
Further solidifying his presence in the state, tennessee governor bill Lee recently announced that The Boring Company, another Musk-owned enterprise, will construct an underground Tesla tunnel connecting Nashville International Airport (BNA) to downtown Nashville. This project mirrors a similar tunnel system built in Las Vegas.
Amid this expansion, questions have arisen regarding Musk’s influence on state politics. Texas Governor Greg Abbott has repeatedly denied public records requests seeking access to his email correspondence with Musk, citing concerns about “intimate and embarrassing” communications, as detailed by Fortune. This lack of transparency has fueled speculation about potential preferential treatment for Musk’s companies.
This story is developing and will be updated as more information becomes available.
Reporting by Keely Quinlan, statescoop.
Key Details Not in Original Article:
Specific Location of xAI Supercomputer: Arlington, Tennessee (Memphis suburb).
Specific Location of SpaceX/X Headquarters: Starbase, Texas (near Brownsville).
