Low earth orbit satellite internet bids came in so much lower than competitors, Colorado awarded just half of its more than $800 million in federal BEAD dollars

*Their bids were so much lower than competitors, they received just 8% of the state’s $826 million in federal BEAD funding. The state awarded just over half of its federal funds. *

Satellite internet companies dominated Colorado’s revised broadband plan that aims to finally get the rest of the state’s households online and up to modern-day internet speeds, the Colorado Broadband Office announced late Friday.

Amazon’s upcoming Project Kuiper and Space X’s Starlink satellite services bid on pretty much every eligible location for a chance to qualify for some part of the state’s $826.5 million allocation as part of the federal Broadband, Equity, Access and Deployment, or BEAD program.

The LEOs, short for low earth orbit services, won 50% of the state’s approximately 90,000 eligible locations of homes and buildings deemed to have no internet or subpar speeds of less than 100 mbps down, and 20 mbps up.

Public comments on the preliminary winners will be accepted until Aug. 29 at 11:59 p.m. After that, the state sends its final plan off to the National Telecommunications and Information Administration by Sept. 4. They’ll have 90 days to review and approve plans.

“I want to celebrate being able to serve more locations with BEAD funding,” said Brandy Reitter, executive director of the Colorado Broadband Office. “Amazon is now part of our broadband ecosystem and we’ll welcome them. … I think Amazon has a lot to prove so I’m looking forward to them delivering on their commitment.”

Originally, the $42 billion BEAD program, which Congress approved in 2021 as part of the Infrastructure Act, prioritized fiber technology because many considered it to be the fastest and most future proof. But it is also the most expensive.

In June, the Trump administration made every state and territory redo their BEAD programs, even in cases where awards were already announced to internet providers. States had to keep technology neutral and pick the lowest cost options.

The LEOs were primarily picked because they could do it much cheaper than everyone else, Reitter said.