Billionaires' Broadband Bonanza: How Elon Musk and Jeff Bezos Are Profiting from a Flawed US Internet Expansion Program

A US program aimed at bridging the digital divide has been transformed into a subsidy machine for tech moguls like Elon Musk and Jeff Bezos. The Broadband Equity, Access, and Deployment (BEAD) program was established in 2021 to provide $42. 45 billion for high-quality, future-proof fiber networks in underserved communities. However, under the Trump administration, the program's focus has shifted toward satellite internet companies, with Musk's SpaceX and Bezos' Amazon receiving hundreds of millions of dollars in subsidies.

This change has left many states frustrated, as they had already submitted proposals under the original guidelines, only to have their progress set back to zero. The new rules have also lowered quality control standards for new networks, prioritizing 'technology neutrality' over the original goal of improving American fiber. As a result, communities like Lake Providence in Louisiana have seen their promised fiber networks replaced with satellite services that are often too expensive for low-income families. The program's delays and shortcomings have sparked criticism from lawmakers and community leaders, who argue that the changes have undermined the program's original goals and will only serve to widen the digital divide.

With billions of dollars in subsidies still up for grabs, it remains to be seen whether the program can be salvaged or if it will continue to benefit only the wealthiest tech companies.

Source: The Verge