Pennsylvania is set to invest $793 million in high-speed internet infrastructure, aiming to connect over 130,000 locations that currently lack broadband access. This initiative is part of a larger federal effort to expand internet connectivity in remote and rural areas across the United States. The funding allocation comes with significant scrutiny, particularly regarding the reliability of satellite internet services compared to traditional fiber-optic networks.
The funding allocation will see approximately two-thirds of eligible locations connected through fiber-optic cables. Meanwhile, 18% of these locations will be served by satellite providers, while 13% will utilize wireless internet solutions. Todd Eachus, president of the Broadband Communications Association of Pennsylvania, remarked, “Pennsylvania struck a relatively reasonable balance here, but the proof will be in the pudding once these get built.”
The recent funding distribution is a result of changes implemented during the previous administration, aimed at revising the broadband program established under the bipartisan infrastructure law of 2021. Under former President Joe Biden, a focus was placed on prioritizing projects that incorporate fiber-optic technology, which is recognized for its speed and reliability but comes with a higher installation cost. The new guidelines introduced in June 2023 shifted the focus toward projects with lower initial costs, making satellite internet offerings from companies like SpaceX and Amazon more competitive.
Different states have experienced varied outcomes from this funding initiative. For instance, states like West Virginia and Louisiana have committed to fiber-optic projects for over 80% of their eligible locations, while Pennsylvania has opted for a more balanced approach. Critics argue that relying on satellite internet providers is a short-sighted strategy, particularly given concerns over their ability to meet future demands for faster internet speeds.
State broadband officials appear to share some of these concerns, as indicated by state records. The infrastructure law recommends prioritizing projects that can “easily scale speeds over time,” and the Pennsylvania broadband authority did not classify any satellite projects in this category. Nevertheless, Amazon’s Project Kuiper secured funding for over 18,000 locations, ranking second in funding allocations behind established provider Comcast. SpaceX is set to cover approximately 4,800 locations.
Some residents have expressed dissatisfaction with the awards granted to Project Kuiper, pointing out that the service is not yet operational. One local resident criticized the decision, stating it represents “a step in the wrong direction just to ensure that ‘internet for all’ is achieved on paper.” Project Kuiper has indicated that it anticipates launching its services to customers later in 2024.
Labor unions have also voiced criticism regarding the funding awarded to satellite providers, arguing that neither SpaceX nor Project Kuiper contributes to local infrastructure development or job creation as fiber broadband does. In its comments, SpaceX has called on the federal government to require Pennsylvania to rebid some locations, claiming that the state did not consistently select the most cost-effective options.
Concerns regarding the capability of satellite internet technology to meet the minimum required speeds linger. According to an analysis by Ookla, only 17.4% of SpaceX users achieved speeds that comply with the federal broadband definition during the first quarter of 2024. Despite this, the analysis noted that median upload and download speeds have improved significantly over recent years. However, research suggests that adding more customers can lead to congestion, resulting in slower speeds for existing users.
Sascha Meinrath, a professor at Penn State University, highlighted these concerns, stating, “If four out of five subscribers aren’t getting broadband speeds today, what do people think is going to happen when you add in hundreds of thousands of new users?”
A spokesperson for SpaceX asserted that the company has consistently met the program’s speed requirements, even during peak demand periods. They emphasized a commitment to improving service quality for both new and existing customers.
The proposed broadband plan now awaits approval from the U.S. Department of Commerce, which has committed to reviewing state proposals within 90 days. The agency has cautioned that it may reject specific grant awards if deemed excessive and has reportedly begun requesting states to quickly rebid certain awards.
This funding initiative, while promising increased connectivity for many underserved areas in Pennsylvania, raises ongoing questions about the future reliability and speed of satellite internet services in meeting the needs of a growing digital landscape.