SpaceX has called on Virginia to overhaul its broadband expansion strategy, arguing the state could save more than $550 million by replacing most planned fiber-optic projects with its Starlink satellite service.
The company’s proposal, sent to state broadband officials and the National Telecommunications and Information Administration (NTIA), contends that the current plan favors “expensive, slow-to-build fiber” and sidelines “speedy, low-cost, and technology-neutral competition.” SpaceX estimates it could connect all households eligible under Virginia’s Broadband, Equity, Access, and Deployment (BEAD) program for $60 million — about one-tenth of the state’s projected $613 million budget.
NEWS: SpaceX is protesting Virginia’s $613M plan to expand high-speed internet access, accusing the state of deliberately denying a larger slice of the subsidies to @Starlink.
Starlink will receive just $3.2M in funding or what amounts to about $584 per site —a sharp contrast… pic.twitter.com/s4GgeIN7pN
— Sawyer Merritt (@SawyerMerritt) August 14, 2025
Virginia’s current plan designates $3.2 million to SpaceX to serve 5,579 homes, averaging $584 per location. In contrast, fiber buildouts for the remaining households are projected to cost between $6,000 and $8,000 each. Satellite providers, including SpaceX and Amazon, collectively received just $7.7 million in BEAD allocations for the state.
Beyond cost, SpaceX claims its Starlink network could be activated immediately, compared with the four-year construction timeline attached to fiber projects. “It would be a huge waste of taxpayers’ money,” the company wrote in its filing, urging the NTIA to require Virginia to revise its broadband plan.
The dispute underscores a broader policy debate in the U.S. over how federal broadband funds should be distributed — whether to prioritize long-term fiber infrastructure or to deploy faster, more flexible satellite options that can reach remote areas sooner.