"Musk's Starlink Receives Up to 29 Trillion Won in Subsidies from Trump Administration"

The Donald Trump administration in the United States is pushing to reform the internet infrastructure subsidy regulations established by the previous Joe Biden administration. As a result, Starlink, the satellite internet service operated by SpaceX, led by CEO Elon Musk, is expected to become eligible for subsidies worth up to 29 trillion won.

According to the Wall Street Journal (WSJ) on the 4th (local time), Commerce Secretary Howard Lutnick stated that the BEAD (Broadband Equity, Access and Deployment) subsidy program, created to expand infrastructure nationwide, will be made technology-neutral.

Elon Musk, CEO of Tesla. Photo by Reuters and Yonhap News.

The BEAD program was created by the Biden administration to expand internet service infrastructure in remote areas of the United States. Previously, state governments could only fund alternative facilities such as satellite internet when installing fiber optic cables was impossible or cost-inefficient. The Republican Party criticized this, saying infrastructure expansion was progressing too slowly and was hindered by unnecessary regulations. However, these restrictions are expected to be removed going forward.

WSJ predicted that the regulatory reform would significantly increase Starlink’s subsidy benefits. According to sources, under the existing program rules, Starlink could receive up to $4.1 billion (approximately 6 trillion won). However, with Secretary Lutnick’s regulatory reform, Starlink could become eligible for subsidies ranging from $10 billion to $20 billion (approximately 15 trillion to 29 trillion won).

The BEAD program requires government-supported companies to offer affordable plans to low-income customers, but sources said Secretary Lutnick is also considering reducing such obligations.

The Biden administration preferred fiber optic cables over other technologies because they are more stable and durable infrastructure-wise. Starlink provides service to rural areas in the U.S. where fiber optic internet is unavailable by launching more than 7,000 satellites into Earth’s orbit, but its dish antenna costs several hundred dollars, and the monthly service fee is about $120 higher.

The regulatory reform is expected to be announced this week, but the details have not yet been finalized.

White House spokesperson Kushi Desai said, "The Trump administration is committed to eliminating government bureaucracy and leveraging cutting-edge technology to deliver tangible results for the American people, especially rural Americans who were left behind by the Biden administration."

A Starlink spokesperson did not respond to requests for comment.

WSJ noted that considering this comprehensive reform, broadband providers may not benefit as much as expected. Broadband internet providers have been concerned that with CEO Musk leading the Department of Government Efficiency (DOGE), BEAD program subsidies might be eliminated or reduced.

According to sources, Starlink lobbied the Commerce Department last year to change BEAD program regulations but stopped lobbying after President Trump took office. CEO Musk became a key insider by successfully leading President Trump’s re-election campaign.