On February 17, 2009, US President Barack Obama signed the American Recovery and Reinvestment Act of 2009 into law which provides for a US$ 787 Billion economic stimulus package. Some of that money may filter to the satellite industry. Specifically, two items may be of interest to satellite companies-the US$ 7.2 Billion in grants to bring broadband internet service to rural areas and the US$ 1 Billion for NASA, which includes $400 million for space exploration.
The US$ 7.2 Billion in grants for broadband access to rural areas does not specify any particular technology, but it is widely held that satellite has an advantage over terrestrial technology like cable and DSL in sparsely populated rural areas. The stimulus plan signed into law did not also specify the speed requirements of certain networks to be eligible for grants unlike in previous versions of the bill which would have favored cable, fiber optic and DSL providers who can offer higher transmission rates.
Some 10-15 million US households live in remote rural areas not served by broadband services providers due to the prohibitive cost of laying terrestrial infrastructure in these areas. The Obama administration considers it a top priority to increase broadband penetration in the US, which ranked 15th in the world according to the Organization of Economic Cooperation and Development (OECD).
The Washington, D.C.-based Satellite Industry Association hailed the broadband provisions of the stimulus package and acknowledged that there may be an opportunity for satellite companies to avail of the grants provided by the bill.
Meanwhile, the stimulus package appropriated an extra US 1 Billion to NASA’s budget through 2010. $400 million of that amount is earmarked for space exploration. Launch-service provider SpaceX welcomed the move in the statement sent by e-mail to the media. Elon Musk said that the additional funding for NASA will ensure that 2009 will be a "big year not just for SpaceX, but for the industry as a whole."
The Obama administration has put renewed emphasis on space exploration vowing to bring back Americans to the moon by 2020.
Alec Ross, a member of the Obama Administration’s Technology, Innovation and Government Reform team said that "the economic stimulus package is just an initial piece of a larger forthcoming national broadband plan."
