LEO Satellites: A Cost-Effective Solution for Broadband Deployment

In a recent op-ed, Ellis Scherer highlights how low-Earth orbit (LEO) satellite technology is emerging as a cost-effective and high-quality solution for broadband deployment, especially in states like Maine, New Mexico, and Texas. These states are leveraging LEO satellites to bridge the digital divide more efficiently and affordably than traditional fiber deployment.

State Initiatives Embracing LEO Technology

• Maine's Working Internet ASAP Program: Aims to connect 9,000 locations using LEO satellites at a cost of $600 per location, totaling $5.4 million.
• New Mexico's Accelerate Connect NM Program: Plans to connect 95,000 homes at approximately $737 per location, with a total investment of $70 million.
• Texas' LEO Grant Program: Launching a $30 million initiative to serve unserved areas, potentially covering many more homes at a significantly lower cost than fiber.

Comparison with Fiber-Based Programs

In contrast, the federal Broadband Equity, Access, and Deployment (BEAD) program often incurs higher costs. For instance, Nevada's BEAD plan allocates $554 million to connect 51,607 locations, averaging $10,730 per location, with some connections costing up to $77,000. These figures underscore the efficiency and affordability of LEO technology.

Recommendations for States

Scherer advocates for a more flexible approach in broadband deployment, suggesting that states should:

• Set Lower Cost Thresholds: Establish a low "Extremely High Cost Per Location Threshold" to prevent excessive spending on fiber. For example, setting the threshold at $1,200, which is twice the price of a Starlink terminal.
• Embrace Alternative Technologies: When fiber costs exceed the set threshold, invest in LEO satellites, fixed-wireless access (FWA), and other affordable broadband solutions.

By adopting these strategies, states can utilize taxpayer dollars more effectively and make significant strides in bridging the digital divide.

Read the full commentary.