SpaceX is urging the Federal Communications Commission to phase out most legacy support mechanisms in its High-Cost program, arguing that satellite broadband and the separate Broadband Equity, Access, and Deployment program, or BEAD, have eliminated the access gaps those subsidies were designed to address. High-Cost has an annual budget of $4.5 billion.
In a May 13 letter to the FCC, SpaceX’s Joseph Bissonnette wrote that “the long-standing problem of high-speed broadband network access has effectively been solved, rendering most legacy High-Cost support mechanisms redundant.” The company’s position rests on its assertion that low-Earth orbit satellite networks now make high-speed, low-latency broadband available throughout the United States.
High-Cost is one of four programs within the federal Universal Service Fund. It funds telecommunications carriers serving rural areas where the market alone cannot support network deployment and connectivity costs. Its purposes include maintaining voice and broadband services, both fixed and mobile, and keeping rates reasonably comparable across rural and urban areas.
Measured speeds and the limits of availability claims
Ookla’s Speedtest research found that participating Starlink users recorded state-level median download speeds of at least 100 megabits per second in every state except Alaska during the second half of 2025. In the corresponding period of 2024, 23 states reached that level.
Median upload speeds reached at least 20 Mbps in 22 states in the second half of 2025, compared with none a year earlier. Separately, Ookla found that 44.7% of measured Starlink users met both the FCC’s 100 Mbps download and 20 Mbps upload benchmark in the fourth quarter of 2025, up from 17.4% in the first quarter.
Those figures describe participating Speedtest users. State medians do not establish the speeds available at every property, and the measurements do not demonstrate universal coverage, affordability or reliability.
Separate funding and service requirements
SpaceX has pursued BEAD grants for Starlink while advocating a phaseout of legacy High-Cost support. BEAD funds broadband expansion in unserved and underserved areas; High-Cost supports rural communications networks and the continued provision of service.
In proposed BEAD contract terms made public in January, SpaceX sought to exclude subscribers from performance testing when it determined that their equipment was damaged, malfunctioning or had an obstructed view of the sky. The proposed rider defined standard installation as mailing equipment to a subscriber and would not require SpaceX to complete a permanent installation.
SpaceX also said it would incorporate BEAD customers’ capacity needs into network planning and dynamically allocate capacity, rather than leave large portions unused. Those statements described the company’s proposed approach to meeting grant requirements.
Amazon has separately announced an enterprise preview of its Leo satellite service, allowing selected business customers to test the network ahead of a broader rollout. That announcement describes a testing program and planned expansion, without establishing general consumer availability.
