SpaceX's Starlink initiative receives $51 million fund to provide Internet access to 31,000 houses in Ohio

In a significant move to bridge the digital divide, SpaceX's Starlink has been awarded substantial funding in multiple states to expand high-speed internet access.

The latest development comes from Montana, where the company was granted $119 million to serve 20,000 locations. This allocation makes Montana the second state, after Ohio, to invest heavily in Starlink's satellite internet services.

Ohio, which was awarded $793 million in the Broadband Equity, Access, and Deployment (BEAD) funding, has chosen to allocate only $227 million to fulfil its deployment goals. As part of this initiative, Starlink will serve 31,000 underserved locations in Ohio.

The BEAD program, originally prioritizing fiber deployments, has undergone a shift under the Trump administration towards "technology neutrality" and lower-cost rollouts. This change in focus has opened up opportunities for satellite internet providers like Starlink.

SpaceX's Starlink has been nominated for $51.6 million in federal subsidies in Ohio, and the company is currently offering discounted Residential plans in eligible states, as well as a 50% discount on its Standard dish across the U.S.

However, Starlink is required to deliver 100Mbps download and 20Mbps upload speeds under the program, while fiber providers like Spectrum and AT&T plan to offer gigabit service. SpaceX is working on boosting Starlink's speeds to gigabit levels.

In Colorado, Starlink is a favored choice for satellite internet, but Amazon's Starlink rival, Project Kuiper, was leaned on more heavily. In Montana, Starlink beat out Spectrum, owned by Charter Communications, which came in second with 13% coverage in the state's BEAD proposal. Ohio picked Starlink to cover 41% of all eligible locations, more than any other participating internet service provider.

Despite these successes, SpaceX has faced challenges in securing BEAD awards in states like Virginia and Louisiana, arguing that it was unfairly excluded. The company has asked the Commerce Department to intervene in these disputes.

As Starlink continues to expand its reach, it will be interesting to see how it competes with traditional fiber providers and how it contributes to bridging the digital divide in underserved areas.

SpaceX's Starlink initiative receives $51 million fund to provide Internet access to 31,000 houses in Ohio