Pennsylvania plans to spend almost $20 million to bring satellite internet to more than 20,000 locations across the commonwealth, after the Trump administration overhauled a massive broadband grant program to prioritize cutting costs.
Under the state’s proposal, which still needs federal approval, Amazon’s low-earth orbit satellite service will cover more than 18,000 locations and SpaceX will serve almost 4,800. It’s part of a nationwide shift that is sparking fierce debate about whether funding satellite internet is a good use of public money.
The technology SpaceX and Amazon use relies on satellites in low-earth orbit, which beam signals to the ground. It’s faster and cheaper to install than internet networks that use fiber-optic cables, but the service tends to be less reliable and more expensive for subscribers.
Critics say it’s not a good long-term investment and won’t be able to meet future demands for faster speeds. It’s also unclear whether satellite technology will be able to consistently offer the minimum speeds required by the grant program, according to a recent report to Congress.
A spokesperson for the Department of Community and Economic Development said grants for satellite projects will go toward reserving satellite capacity rather than directly funding infrastructure. Satellite providers must also give customers the equipment they need in order to use the service at no charge, he said.
SpaceX is already available almost everywhere in Pennsylvania, while Amazon’s service is not yet accessible to the public.
‘Level playing field’
Created in 2021 as part of a sweeping bipartisan infrastructure package, the broadband program aims to bring high-speed internet to everyone in the U.S., no matter how remote or rural the location. Under the Biden administration, networks using fiber-optic cables were given priority because of their ability to both meet the program’s speed requirements and offer faster speeds in the future.
In June, the Trump administration overhauled those rules with the goal of cutting costs and putting all broadband technologies on a “level playing field.”
It’s hard to say exactly what difference the changes made in Pennsylvania. The state began taking applications last November but did not issue any awards before the changes were announced. Roughly two-thirds of eligible locations will get fiber internet.
Still, the new rules opened the door for satellite providers to play a larger role. In Pennsylvania, SpaceX did not apply during the first application period, but did once the rules had changed.
When scoring applications, officials at Pennsylvania's Broadband Development Authority prioritized projects they deemed capable of delivering broadband speeds even in areas with heavy tree cover, steep slopes, or low population density.
“Non-priority” projects were considered only when no priority projects applied to serve a particular area, or when the priority projects were too expensive, a DCED spokesperson said. No satellite projects were designated “priority.”
Critics question why the U.S. is spending money to connect people to a service that, in the case of SpaceX, is already widely available.
“Most people have already decided they want it or don’t — this isn’t gonna change their mind,” said Doug Dawson, president of CCG Consulting, a national telecommunications consulting firm.
In a policy memo issued over the summer, the Trump administration set out updated rules for satellite providers, saying they must “reserve sufficient capacity” to deliver broadband to customers in the areas they will cover.
Those providers must also give customers the start-up equipment necessary to use the service — often a satellite dish and router — at no cost. But residents in grant-funded areas will still have to pay the monthly subscription fee, which for SpaceX typically costs between $80 and $120.
Critics argue that awards to satellite providers will result in customers paying more for less reliable service at speeds that could be obsolete in a few years — if they even choose to sign up at all.
“I don’t know what to say to folks who got satellite other than, ‘It feels like you got screwed,’” Dawson said.
Other industry experts say the program’s speed requirements will make a major difference.
“It’s a hard commitment and they have to demonstrate the service is being delivered on a regular basis,” said Greg Guice, chief policy officer at the Vernonburg Group, which advises state and local governments on broadband issues.
The grant program also gives satellite companies a financial incentive to sign up customers, Guice said.
The federal agency overseeing the grant program is set to approve Pennsylvania’s final proposal by early December. Companies that receive grant funding must provide internet service within four years.