Expanding broadband access in rural America has always been a challenge, but Colorado is now at the center of a major shift. In a surprising turn of events, Amazon’s Project Kuiper and SpaceX’s Starlink have been awarded half of Colorado’s underserved broadband locations under the federal Broadband Equity, Access, and Deployment (BEAD) program.
This marks a pivotal moment for rural internet users who have long struggled with slow or non-existent service. But what does this really mean for Colorado’s residents—and the future of broadband across the U.S.? Let’s break it down.
Why Satellites Are Suddenly Winning Big
Until recently, Colorado’s broadband expansion plan focused heavily on fiber-optic networks. Fiber is considered the “gold standard” because it’s ultra-fast, durable, and future-proof. But it comes with a big problem: cost.
On June 6, federal guidelines shifted, requiring states to consider technology-neutral proposals and prioritize lowest-cost solutions. Suddenly, fiber wasn’t the automatic winner anymore. Enter satellite internet—cheaper to deploy in remote areas and fast enough to meet modern requirements.
This change opened the door for satellite providers like Amazon and Starlink to swoop in and claim a large portion of the funding.
The Breakdown: Who Won What
Here’s how the awards shook out among providers:
- Amazon Project Kuiper: Awarded roughly 42,000 locations (about 47%) with funding of around $25.3 million. That works out to just under $600 per location—a bargain compared to fiber buildouts.
- Starlink (SpaceX): Granted about 5,400 locations (roughly 6%), worth $9.1 million in funding, at a higher average of $1,700 per site.
- Fiber Providers: Still got the lion’s share of money—91% of the $409 million—but covered fewer total locations due to high installation costs.
- Fixed Wireless: Claimed just 2% of locations and 1% of funding.
In short, satellites claimed 50% of Colorado’s underserved locations, while fiber providers still walked away with most of the money.
Why This Matters for Rural Communities
For residents in rural Colorado, this is big news. Many communities have waited years for reliable broadband, only to see fiber projects delayed or deemed too expensive. Satellites, by contrast, can be deployed much faster and at a fraction of the cost.
However, there are trade-offs. Starlink already has service up and running, but Amazon’s Project Kuiper is still in development, with service not expected until 2027. That means some communities may be left waiting longer than they’d hoped.
The decision also raises questions: Should long-term, future-proof solutions like fiber take precedence, or should faster, cheaper fixes like satellites lead the way? Colorado’s pivot suggests that cost and speed-to-deploy are winning out—for now.
What Happens Next
The current allocations are still preliminary. Public comments will be accepted until August 29, 2025, and Colorado must submit its final plan to the NTIA by September 4, 2025. After that, the federal government will have 90 days to review and approve.
Meanwhile, both Amazon and Starlink must prove they can deliver on their promises. Project Kuiper, in particular, has a lot to prove since it hasn’t launched commercial service yet.
This move represents a major shift in broadband policy—from expensive, ideal solutions like fiber to pragmatic, cost-effective ones like satellite internet. Whether this gamble pays off will depend on how quickly providers can roll out service and how reliable those connections turn out to be.
For Colorado’s rural families, students, and small businesses, the stakes couldn’t be higher. Broadband isn’t just about faster Netflix streaming—it’s about education, healthcare, and economic opportunity.
If Amazon and Starlink deliver, this could be a game-changer. If not, underserved communities may once again find themselves waiting on promises that never materialize.
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