SpaceX has issued a document addressed to state broadband offices that it said constituted a rider outlining the differences between the rules of the Broadband Equity, Access, and Deployment (BEAD) Program and how SpaceX perceives its responsibilities as a low-Earth orbit (LEO) provider. The letter seeks to release LEO providers from many BEAD Program standards.
The rider — attributed to SpaceX Senior Counsel Shea Boyd — threatens to exit the BEAD Program if the changes are not made. There is no explanation explaining why the changes, which are significant, are being addressed so late in the process.
In the rider’s section on “Performance obligations,” SpaceX stated that LEOs view capacity on a dynamic basis that is fundamentally different than a terrestrial network. Capacity is not reserved and “left fallow,” which “would be wasteful, inefficient, and does not reflect a LEO providers ability to dynamically allocate capacity where needed.”
Instead, SpaceX said their capacity is based on a real-time fluid combination of network traffic, launch activity, and sales levels. Boyd wrote that the proof of the platform’s capabilities are its quality of service measurements and reporting.
The letter clarified other points about the inherent difference between a LEO and a terrestrial network. SpaceX is seeking changes and exemptions and making proposals related to several issues: payment and reimbursement schedules; penalties, reporting, records, and audits terms; labor and insurance elements of BEAD; and the Program’s low-cost-service option.
“Clearly, efforts have been made to adapt underlying program documents to LEO within the initial timelines available,” the SpaceX letter said.
“However, a number of issues remain that, if unaddressed, could render LEO participation in the program untenable. We look forward to working together to more fully tailor aspects of the project agreement to the reality of LEO deployment and operations now that the initial project selection and approval phase is accomplished.”
Earlier this month, the FCC approved SpaceX’s plan to add 7,500 Gen2 Starlink satellites to orbit, doubling its current number and bringing its total network to 15,000 satellites. The additional satellites will enable SpaceX to better provide low-latency, high-speed Internet communications across the globe.
Tennessee was an early state in which comparisons could be made between the initial round and the Benefit of the Bargain round. SpaceX’s Starlink did not seek funding in the first round of BEAD funding in Tennessee but sought funding in 164 project areas in the second round.
