SpaceX Presses FCC to Classify Starlink as Advanced Broadband

SpaceX wants the FCC to count Starlink as “advanced” broadband in its annual Section 706 report, a move that could reshape funding, benchmarks, and competition in rural internet buildouts.

Why the FCC’s Section 706 Review Matters Now

The FCC is reworking how it measures broadband deployment under Section 706 of the Telecommunications Act. In 2024, the agency set a 100/20 Mbps benchmark, added affordability and adoption metrics, and floated a long-term goal of 1 Gbps/500 Mbps. A new proposal led by Chair Brendan Carr would narrow the inquiry to deployment only, keep 100/20 as the standard, and drop the gigabit target and affordability/adoption metrics. At the same time, the FCC is reconsidering whether low-Earth orbit (LEO) satellite should count toward “advanced telecommunications capability.” That opens the door for Starlink.

Starlink’s Pitch: Coverage Today, Capacity and Gigabit Path Tomorrow

SpaceX argues that excluding LEO distorts the national picture. The company says Starlink serves more than 2 million U.S. subscribers and posts median peak-hour speeds near 200 Mbps today. It also points to forthcoming “V3” satellites that target gigabit-class performance and a material step-up in capacity. The pitch: fiber scales slowly and expensively, while a rapidly expanding satellite constellation can reach hard-to-serve geographies now.

Fiber Case: Scalability, Symmetry, and Consistent Performance

Rural electric co-ops and community telcos counter that LEO networks remain capacity constrained and variable. Their central question is scalability: if a large share of households in a beam subscribe, can the network still sustain 100/20 Mbps—let alone support telemedicine, distance learning, or cloud-heavy workloads? Groups cite past pauses on new Starlink sign-ups in congested cells as evidence that LEO needs more proof before being treated as equivalent to fiber.

FCC Benchmark Debate: Deployment-Only vs Future-Proof Standards

The debate blends technology capability with regulatory philosophy over what the FCC should measure and reward.

Deployment-Only Camp: Keep 100/20 and Technology Neutrality

USTelecom, CTIA, WISPA, NCTA, ACA Connects, and the Free State Foundation support narrowing Section 706 to deployment only and keeping 100/20 as the benchmark. They argue affordability and adoption sit outside the statute and say long-term gigabit goals bias policy toward fiber. The Information Technology and Innovation Foundation adds that consumer experience should trump raw throughput, and that fiber, fixed wireless, and satellites should all count if they meet service thresholds.

Raise-the-Bar Camp: Symmetry and Forward-Looking Metrics

The National Rural Electric Cooperative Association presses for a 100/100 Mbps symmetrical benchmark or, at minimum, formal reporting on symmetry given new upload-heavy use cases. NTCA—The Rural Broadband Association—urges forward-looking standards that reflect emerging needs from AI applications to precision agriculture. The Benton Institute warns removing affordability and adoption would misread progress, especially after the Affordable Connectivity Program’s lapse. Competitive carrier group INCOMPAS wants the FCC to keep tracking progress toward 1 Gbps/500 Mbps even if it is not a formal goal. Watchdog groups also criticize a perceived tilt toward subsidizing non-fiber options without rigorous performance guardrails.

Funding and Competition Impacts: BEAD, USF, Rural Markets

How the FCC labels satellite will influence where billions in subsidies flow, how providers prioritize builds, and what rural users can expect over the next decade.

BEAD Eligibility and the Definition of Served Locations

The $42.5 billion BEAD program is designed to close coverage gaps. If LEO counts as “advanced,” more census blocks could be deemed served, reducing fiber eligibility. Starlink has already secured funding to reach more than 200,000 locations, even while it markets service nationwide. States and the Commerce Department face pressure to balance cost, speed, and durability—especially after an emphasis on “technology neutrality” returned billions to federal coffers for reallocation.

USF Economics and Long-Term Upgrade Incentives

If satellite is recognized as fulfilling advanced broadband needs, the case for high-cost subsidies in remote areas becomes harder. Policy experts warn this could weaken fiber upgrades over time, slowing progress toward symmetrical and gigabit-class standards. The risk: a two-tier rural internet, where many communities plateau at 100/20 with variable latency and shared capacity while urban and suburban areas move ahead with multi-gig and low-latency fiber.

Enterprise and Public-Sector Performance Requirements

Rural healthcare, education, public safety, and agriculture increasingly rely on synchronous, low-latency links, sustained upload, and predictable jitter. Telemedicine, remote diagnostics, and real-time farm telemetry are sensitive to congestion and uplink throughput. Businesses planning AI-enabled video analytics or cloud collaboration will feel the difference between 100/20 shared LEO capacity and dedicated fiber circuits with service-level guarantees.

Strategic Guidance for Telecom and ISP Leaders

Network strategy, product design, and regulatory posture should adapt now to likely shifts in how the FCC measures “advanced” broadband.

Plan Multi-Access, Model Contention and Peak-Hour Realities

Blend fiber where viable with LEO and fixed wireless for reach. Model beam-level capacity, oversubscription ratios, backhaul constraints, and peak-hour performance, not just median speeds. Set clear SLAs and prioritize QoS for critical applications to avoid degradation as take rates rise.

Engage in Rulemaking and State Execution with Evidence

Reply comments on the Section 706 proceeding are due in late September, with final findings expected in early 2026. Coordinate with state broadband offices, challenge maps where satellite coverage masks unmet needs, and document real-world performance, latency, and congestion to inform funding decisions.

Design for Symmetry and Clear Upgrade Paths

Even if 100/20 remains the federal yardstick, enterprises are trending to symmetrical tiers. Build roadmaps to 100/100 and beyond, with fiber deepening where density supports it and targeted LEO/FWA for redundancy and interim coverage. Be transparent about when LEO can meet business-grade needs and when it cannot.

What to Watch: FCC Decisions, Capacity, and Legal Signals

Key decisions in the coming quarters will determine whether the U.S. sets a floor or a trajectory for rural broadband.

FCC Benchmarks and LEO Inclusion Decisions

Watch whether the Commission locks in 100/20, retires the gigabit goal, and formally includes LEO as “advanced.” Those choices will ripple through BEAD eligibility and future USF policy.

Starlink V3 Rollout, Capacity, and Congestion Management

Track launch cadence, gigabit claims, and any new sign-up moratoriums in congested cells. Independent testing during peak hours will be the best indicator of sustained performance.

Legal and Political Signals Shaping Broadband Policy

Expect continued arguments over statutory scope after recent Supreme Court decisions. The balance between technology neutrality and future-proofing will define whether rural America gets stopgap connectivity or long-lived digital infrastructure.