Amazon, SpaceX Awarded Millions in Pennsylvania broadband Funding Amid Reliability Concerns
HARRISBURG, PA – โ Pennsylvania hasโข allocatedโค a portion of its $793 million in federalโ broadband funding too Amazon and SpaceX, sparking debate over the reliability of service these โcompanies can deliver, notably in reaching underserved areas. Theโ state’s plan, awaiting approval from โthe U.S. Department of Commerce, aims โคto expand high-speed internet access across the commonwealth.
According to a recent analysis by Ookla, โaโ company specializing inโ internet speed measurements, only โ17.4% of SpaceX’s Starlink users in the first three months of the โyear consistently achieved speeds meeting the federal definition of broadband. though, Ookla’s analysis alsoโค noted significant โขimprovements in median upload and download speeds over the past several years.
Concerns center โขon potential congestion as subscriber numbers grow. Research suggests adding โขmore customers can lead to slower speeds for existing users. “if four โคoutโ of five subscribers aren’t getting broadband speeds โคtoday, what do โpeople think is going to happen when you add in hundreds โof thousands of new users?” questioned Sascha Meinrath, a professor at Penn State and coauthor of a recent study questioning SpaceX’s โคability to meet program requirements. “The problem gets far worse the more people you โคput onto the infrastructure.”
SpaceX maintains its service meets program requirements.A company spokesperson told Spotlight PA โvia email that median download speeds, even during peak demand as of July 2025, exceed theโ necesaryโข thresholds,โ and the company is committed to “ensuring the overall โquality of service for new and existing customers continually improves.”
The U.S. Department of Commerceโค has 90 โdays to โreview Pennsylvania’s plan. Theโข agency hasโ indicated it may reject grant awards deemed “excessive” andโ reports suggest it is indeedโ already prompting states to rebid awards โคin certain areas, though theโค agency has not publicly commented on this process.
Pennsylvania’s broadband funding comes โfrom the federal Broadband Equity, Access, and Deployment (BEAD) โprogram, designed to close the digital divide and ensure universal access to reliable, affordable high-speed internet.