FCC tightens rules for giving grants to broadband companies
The FCC under the Biden administration has informed the companies who obtained subsidies to encourage broadband access in rural areas that the money can only be spent in those areas, not on infrastructure improvements in facilities located in regions that already have good internet access.
The Federal Communications Commission told SpaceX and other companies on Monday that the billions in rural broadband subsidies it doled out last year can’t be used in already connected areas like “parking lots and well-served urban areas,” citing complaints. The commission, in an effort to “clean up” its subsidy auction program, offered the companies a chance to rescind their funding requests from areas that already have service.
The companies that got the subsidies must do the work to determine they qualify for the money, wrote Michael Janson, director of the FCC’s Rural Broadband Task Force, in a letter addressed to SpaceX’s finance director David Finlay. Similar letters, first reported by Bloomberg, were sent to other recipients of the commission’s Rural Digital Opportunity Fund, a $9.2 billion auction to expand broadband into rural areas that lack or have no service.
The news reports I’ve seen of this story have all been from the generally leftwing press, and have been written to hammer SpaceX. No matter. This program is rife with corruption and the misuse of taxpayer money. SpaceX doesn’t need the nearly billion dollar subsidy it got, or if it does need the billion, it should get it from private investment. As should all the other companies getting cash in this program.
Sadly, the Biden administration does not appear interested in ending the program. Instead, I get the sense what it really wants to do is send the cash to its own cronies, instead of the cronies favored by the Trump adminstration. Thus, do not be surprised if Blue Origin’s as-yet unbuilt Kuiper constellation starts to be a recipient of funds, even as the money is cut from SpaceX’s Starlink constellation.
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The FCC under the Biden administration has informed the companies who obtained subsidies to encourage broadband access in rural areas that the money can only be spent in those areas, not on infrastructure improvements in facilities located in regions that already have good internet access.
The Federal Communications Commission told SpaceX and other companies on Monday that the billions in rural broadband subsidies it doled out last year can’t be used in already connected areas like “parking lots and well-served urban areas,” citing complaints. The commission, in an effort to “clean up” its subsidy auction program, offered the companies a chance to rescind their funding requests from areas that already have service.
The companies that got the subsidies must do the work to determine they qualify for the money, wrote Michael Janson, director of the FCC’s Rural Broadband Task Force, in a letter addressed to SpaceX’s finance director David Finlay. Similar letters, first reported by Bloomberg, were sent to other recipients of the commission’s Rural Digital Opportunity Fund, a $9.2 billion auction to expand broadband into rural areas that lack or have no service.
The news reports I’ve seen of this story have all been from the generally leftwing press, and have been written to hammer SpaceX. No matter. This program is rife with corruption and the misuse of taxpayer money. SpaceX doesn’t need the nearly billion dollar subsidy it got, or if it does need the billion, it should get it from private investment. As should all the other companies getting cash in this program.
Sadly, the Biden administration does not appear interested in ending the program. Instead, I get the sense what it really wants to do is send the cash to its own cronies, instead of the cronies favored by the Trump adminstration. Thus, do not be surprised if Blue Origin’s as-yet unbuilt Kuiper constellation starts to be a recipient of funds, even as the money is cut from SpaceX’s Starlink constellation.
I must unfortunately ask you for your financial support because I do not depend on ads and rely entirely on the generosity of readers to keep Behind the Black running. You can either make a one time donation for whatever amount you wish, or you sign up for a monthly subscription ranging from $2 to $15 through Paypal or $3 to $50 through Patreon.
Your support will allow me to continue covering science and culture as I have for the past twenty years, independent and free from any outside influence.
Your support is even more essential to me because I not only keep this site free from advertisements, I do not use the corrupt social media companies like Google, Twitter, and Facebook to promote my work. I depend wholly on the direct support of my readers.
You can provide that support to Behind The Black with a contribution via Patreon or PayPal. To use Patreon, go to my website there and pick one of five monthly subscription amounts, or by making a one-time donation. For PayPal click one of the following buttons:
If Patreon or Paypal don't work for you, you can support Behind The Black directly by sending your donation by check, payable to Robert Zimmerman, to
Behind The Black
c/o Robert Zimmerman
P.O.Box 1262
Cortaro, AZ 85652
Or you can donate by using Zelle through your bank. You will need to give my name and email address (found at the bottom of the "About" page). The best part of this electronic option is that no fees will be deducted! What you donate will be what I receive.
So the problem is that the FCC wants the money spent on what it was intended for? Or is the problem that the subsidy exists – which you appear to blame Biden for, even though it predates his administration.
Starlink is providing service in most of rural America. How can the government deny them the incentives
From the article:
There’s the problem. This is seen as a Republican program, specifically a Trump program, therefore orange man bad.
It also appears from the article that none of the other service providers is signing up highway medians (Internet of Things, anyone?) or grassy knolls — er — fields.