Starlink’s shot at providing rural broadband

Remote rural properties still lacking fast broadband can now apply for a $2000 grant “towards set-up and installation costs of a suitable broadband solution” — and Elon Musk’s Starlink is an eligible provider.

The Remote Users Scheme, announced by Rural Communities Minister Damien O’connor and Digital Economy Minister David Clark, is aimed at owner-occupied properties, farmhouses occupied by sharemilkers, and occupied dwellings on iwi land.

Companies that think they might be eligible for the scheme can apply via

Crown Infrastructure Partners’ website.

CIP will then put the work out to tender.

Any provider is welcome to submit a proposal.

A spokesman for Clark’s office said there would be nothing to stop Musk’s Starlink bidding to connect rural homes under the scheme.

Starlink charges $1049 for a satellite dish, cable and wi-fi router setup.

The Musk-owned firm has previously talked up a cost-effective way to deliver fast internet to properties too remote to be commercially viable for local providers, and outside the reach of the public-private Rural Broadband Initiative.

But this is the first time that Musk’s company has — potentially — been able to bid for some of the action. Starlink has been asked for comment.

Satellite broadband typically costs at least two or three times the price of a fibre or fixed-wireless connection. A total of $15 million has been earmarked for the Remote Users Scheme, or enough for 7500 broadband connections at $2000 per property.

The $15m is part of a $60m top-up for rural broadband that formed part of Budget 2022. The balance of the money will go to extending the Rural Broadband Initiative to cover another 30,000 households. r.