"SpaceX has issued a document addressed to state broadband offices that it said constituted a rider outlining the differences between the rules of the Broadband Equity, Access, and Deployment (BEAD) Program and how SpaceX perceives its responsibilities as a low-Earth orbit (LEO) provider. The letter seeks to release LEO providers from many BEAD Program standards. The rider - attributed to SpaceX Senior Counsel Shea Boyd - threatens to exit the BEAD Program if the changes are not made."
"In the rider's section on "Performance obligations," SpaceX stated that LEOs view capacity on a dynamic basis that is fundamentally different than a terrestrial network. Capacity is not reserved and "left fallow," which "would be wasteful, inefficient, and does not reflect a LEO providers ability to dynamically allocate capacity where needed." Instead, SpaceX said their capacity is based on a real-time fluid combination of network traffic, launch activity, and sales levels."
"Boyd wrote that the proof of the platform's capabilities are its quality of service measurements and reporting. The letter clarified other points about the inherent difference between a LEO and a terrestrial network. SpaceX is seeking changes and exemptions and making proposals related to several issues: payment and reimbursement schedules; penalties, reporting, records, and audits terms; labor and insurance elements of BEAD; and the Program's low-cost-service option."
SpaceX issued a rider to state broadband offices seeking exemptions from numerous BEAD Program requirements and warning it may withdraw from the program if requested changes are not accepted. SpaceX argues that LEO capacity is dynamically allocated and cannot be treated like reserved terrestrial capacity, calling reserved, fallow capacity wasteful and unreflective of LEO operations. SpaceX describes capacity as determined by real-time network traffic, launches, and sales, and points to quality-of-service measurements and reporting as proof. SpaceX requests tailored adjustments across performance obligations, payments, penalties, reporting and audits, labor and insurance, and the low-cost-service option, and urges negotiation to align the program with LEO operational realities.
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