Starlink’s Long-Term Cost Impact on Rural Communities in the United States

Jakarta, Pintu News – The $42 billion federal broadband program in the United States is undergoing revisions that could benefit satellite internet services like Elon Musk’s Starlink. Although satellites offer lower initial costs, analysis shows that in the long run, this option may be more expensive for rural communities compared to fiber optics.

Broadband Program Revision and Its Potential Impact

The US government is revamping its Broadband Equity and Access Deployment (BEAD) program that aims to provide fast and stable internet to all households in the country. Initially, the program prioritized the construction of fiber optic networks due to their reliability and longevity. However, with Elon Musk and others lobbying, there is now a push to shift some of the funding to satellite internet services like Starlink.

Fiber optics do require a high initial installation cost, around $1,500 (Rp24,450,000) per location, but can last for decades with proper maintenance. In contrast, satellite services such as Starlink offer lower initial costs, but potentially higher long-term costs.

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Long-term Cost Analysis

An analysis conducted by several state officials shows that over a 30-year period, the use of satellite services could cost $4 billion (Rp65.2 trillion) more than fiber optics. This means that each household in rural areas may have to spend an additional $15,600 over three decades if they opt for satellite services.

This cost difference is due to several factors, including higher monthly subscription fees for satellite services and the need to replace or update equipment more frequently compared to optical fiber. In addition, the better performance and reliability of optical fiber in the long run is also a major consideration.

Potential Profits for Starlink

If the BEAD program shifts its focus to satellite services, Starlink could potentially receive between $10 billion and $20 billion in funding. This has raised concerns among officials and the public that this decision favors certain companies over the overall public interest.

While satellite services can be a temporary solution for areas that are hard to reach by fiber optics, it is important to consider the long-term cost implications and impact on rural communities. The decision to shift funding to satellite services should be based on a thorough analysis that considers reliability, cost, and long-term benefits to end users.

Conclusion

A revised federal broadband program that shifts the focus to satellite services such as Starlink has sparked debate over the long-term costs and benefits for rural communities in the United States. While satellite services offer a quick solution at a lower initial cost, it is important to consider the long-term cost implications and reliability of such services before making decisions that will impact millions of citizens.

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Reference:

• Noor Bazmi. Elon Musk’s Starlink will have very high long-term costs for rural Americans. Accessed March 27, 2025.
• Featured Image: Britannica