Fiber vs. Satellite: Nebraska’s Rural Broadband Battle

Nebraska Leaves Millions on the Table in Rural Broadband Fight

Nebraska’s effort to expand high-speed internet access is sparking frustration among rural leaders, broadband advocates, and telecom providers. Out of the $405 million in federal Broadband Equity, Access, and Deployment (BEAD) funds allocated to the state, officials have proposed spending only $43.8 million—leaving more than $350 million unassigned and potentially at risk of being sent back to Washington.

Advocates say this decision means that thousands of rural Nebraskans will be stuck with slower, less reliable satellite and wireless services instead of fiber-optic broadband, the gold standard for internet connectivity.

A Decision That Shocked Rural Leaders

The Nebraska Broadband Office, created by Gov. Jim Pillen, released its provisional awards earlier this month. The announcement triggered disappointment across the state.

Emily Haxby, a Gage County Commissioner and broadband advocate, didn’t mince words: “If there were a trophy for squandering opportunity, Nebraska would already have it on the shelf.”

Others worry about the long-term consequences for Nebraska’s economy. John Nelson, CEO of Hamilton Telecommunications, which has delivered fiber service for four decades, warned: “I’m concerned that there are a lot of locations that will be left behind.”

According to state data, about 10,000 locations in rural Nebraska will now be relegated to satellite or fixed wireless instead of fiber.

Fiber vs. Satellite: A Policy Shift

Why is Nebraska spending so little of its federal allotment? Officials point to recent rule changes from the National Telecommunications and Information Administration (NTIA) following the Trump administration’s push for cost-cutting.

Originally, BEAD prioritized fiber deployment. But in June, the NTIA shifted focus to “lowest-cost” technologies, putting satellite and fixed wireless on equal footing. That made Nebraska’s flat landscape especially attractive for cheaper, non-fiber solutions.

• Fiber cost per location: ~$14,600
• Fixed wireless: ~$2,200
• Satellite (Starlink/Kuiper): ~$1,000

Patrick Haggerty, director of the Nebraska Broadband Office, defended the approach: “We continue to fight for the best outcome for Nebraska. We’ve always known we would have to deploy a mix of technologies.”

But critics say that approach leaves the state far behind its neighbors. Only 9% of Nebraska’s eligible locations are slated for fiber, the lowest rate among 39 states. By comparison:

• Iowa: 50%
• Kansas: 46%

The Fate of the Unspent $350 Million

The bigger question is what happens to the $350 million Nebraska hasn’t proposed to spend. Some fear it will be clawed back by the federal government as part of broader spending cuts. Others argue states should retain unspent money for related purposes, such as workforce training or digital inclusion.

Louisiana Gov. Jeff Landry recently sent a letter to federal officials, arguing that leftover funds should stay in-state for broadband-related projects. Nebraska officials say they’ll make the same case, though the final decision rests with NTIA and the Treasury Department.

Oliver Borchers-Williams of the Southeast Nebraska Development District called the possibility of losing the money “the biggest disappointment this program has brought so far.”

Economic Stakes for Rural Nebraska

High-speed internet isn’t just about streaming movies. For rural Nebraska, it’s tied to the future of precision agriculture, telehealth, remote work, and small business growth.

Tip O’Neill, president of the Nebraska Telecommunications Association, questioned whether the current plan really levels the playing field: “Does this really bring broadband to unserved and underserved rural areas that’s equal to what you get in urban areas? It doesn’t.”

Community leaders warn that students, farmers, and small-town businesses will be forced to rely on technology that may struggle to keep up with growing demands. Fiber, they argue, is the only long-term solution because it can be continually upgraded as internet speeds increase.

A Conservative Strategy—or a Missed Chance?

Defenders of Nebraska’s cautious approach say it might prove smart if the NTIA later cuts back fiber awards in other states. For now, though, the state’s plan delivers only incremental progress while leaving many rural residents frustrated.

Satellite systems like Starlink and Project Kuiper can fill gaps at a lower price, but they come with reliability issues—especially in bad weather—and limited scalability compared to fiber.

For advocates like Haxby, the choice is clear: “Fiber is the gold standard. Anything less is a betrayal of every family, farmer, business and student left behind on the wrong side of the digital divide.”

More on BEAD and Broadband

• More of our recent stories about BEAD and public broadband programs
• For up-to-date information on the $42 billion BEAD Program, check Brander Group’s BEAD funding progress dashboard
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