Howard Lutnick, commerce secretary under President Trump, told leaders of the government’s rural broadband initiative to prioritize less reliable satellite connectivity over ground-based broadband—and specifically recommended Elon Musk’s Starlink. That is according to the Financial Times, which reports that Lutnick “mentioned Musk by name.”
The comments came from Evan Feinman, who ran the rural broadband program until being pushed out last week. “The clear thrust of his directive was to increase the amount of satellite being used regardless of any other considerations,” Feinman told FT. Starlink uses satellites in low-earth orbit, offering faster speeds than older space-based internet services likes HughesNet. But Feinman has been an outspoken critic of using Starlink in place of fiber optic, as satellite-based internet cannot reach the types of speeds expected from ground-based infrastructure. Requests make a round-about trip to space and back, and consequently there is significant ping; synchronous communications like video calls or multiplayer gaming can be slow. Starlink is easy to provide initially, as customers simply need a satellite dish. But Feinman’s argument is that over the long term, rural Americans will be left with a lesser service.
While Feinman could be described as a disgruntled former employee, the allegation he’s made is not at all surprising, and another example of Musk’s influence in the White House benefiting his business empire at the expense of others. President Trump has used his platform to promote Tesla vehicles amid a sales collapse, and other agencies have considered providing contracts to Musk companies. Musk’s nearly $300 million contribution to Trump’s campaign PAC is a quid pro quo out in the open.
His newest bid for being the heart of rural America’s internet isn’t a huge surprise. During the Biden administration, the Federal Communications Commission denied nearly $900 million in subsidies to SpaceX through the Bead program, saying its service did not meet expectations regarding speed. Bead, as the rural internet program is called, is the $42.45 billion initiative launched under the Biden administration to expand high-speed broadband in rural communities. Besides denying Musk nearly a billion dollars in subsidies Bead also received criticism from Republicans as no service has yet to be deployed via the three-year old program. Three states were preparing to hit dirt just as President Trump took office for his second term.
Now Feinman is out, Starlink and SpaceX are back at the subsidies trough, and with no major technological changes to how Starlink works it is hard to see Lutnick’s comments as anything more than a favor.
