FCC denies Starlink $886 million grant
Despite the fact that SpaceX Starlink constellation is presently providing internet access to more rural customers than any company worldwide, the FCC yesterday announced that it will not award the company a $886 million subsidy under its program for expanding broadband service to rural areas.
The FCC announced today that it won’t award Elon Musk’s Starlink an $886 million subsidy from the Universal Service Fund for expanding broadband service in rural areas. The money would have come from the Rural Digital Opportunity Fund program (RDOF), but the FCC writes that Starlink wasn’t able to “demonstrate that it could deliver the promised service” and that giving the subsidy to it wouldn’t be “the best use of limited Universal Service Fund dollars.”
That was the same reason the FCC gave when it rejected Starlink’s bid last year, which led to this appeal. SpaceX had previously won the bidding to roll out 100Mbps download and 20Mbps upload “low-latency internet to 642,925 locations in 35 states,” funded by the RDOF.
This decision can only be explained by utterly political reasons. SpaceX right now is experiencing a booming business, with its traffic up two and a half times from last year,almost all of which is in rural areas. That number is from a news report today, the same day the FCC claims Starlink can’t provide such service. As noted by one SpaceX lawyer:
“Starlink is arguably the only viable option to immediately connect many of the Americans who live and work in the rural and remote areas of the country where high-speed, low-latency internet has been unreliable, unaffordable, or completely unavailable, the very people RDOF was supposed to connect.”
The initial award was made in December 2020, when Trump was still president. It was first canceled in August 2022, after Biden took over. SpaceX appealed, but today’s announcement says the FCC rejected that appeal.
While there is absolutely no justification to give any company this money — SpaceX is proving private companies don’t need it to provide this service to rural areas — this decision is clearly political, driven by the hate of Elon Musk among Democrats and the Biden administration. They don’t care that SpaceX is a successeful private company providing tens of thousands of jobs as well as good products to Americans. Musk does not support them, and so he must be squashed.
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Despite the fact that SpaceX Starlink constellation is presently providing internet access to more rural customers than any company worldwide, the FCC yesterday announced that it will not award the company a $886 million subsidy under its program for expanding broadband service to rural areas.
The FCC announced today that it won’t award Elon Musk’s Starlink an $886 million subsidy from the Universal Service Fund for expanding broadband service in rural areas. The money would have come from the Rural Digital Opportunity Fund program (RDOF), but the FCC writes that Starlink wasn’t able to “demonstrate that it could deliver the promised service” and that giving the subsidy to it wouldn’t be “the best use of limited Universal Service Fund dollars.”
That was the same reason the FCC gave when it rejected Starlink’s bid last year, which led to this appeal. SpaceX had previously won the bidding to roll out 100Mbps download and 20Mbps upload “low-latency internet to 642,925 locations in 35 states,” funded by the RDOF.
This decision can only be explained by utterly political reasons. SpaceX right now is experiencing a booming business, with its traffic up two and a half times from last year,almost all of which is in rural areas. That number is from a news report today, the same day the FCC claims Starlink can’t provide such service. As noted by one SpaceX lawyer:
“Starlink is arguably the only viable option to immediately connect many of the Americans who live and work in the rural and remote areas of the country where high-speed, low-latency internet has been unreliable, unaffordable, or completely unavailable, the very people RDOF was supposed to connect.”
The initial award was made in December 2020, when Trump was still president. It was first canceled in August 2022, after Biden took over. SpaceX appealed, but today’s announcement says the FCC rejected that appeal.
While there is absolutely no justification to give any company this money — SpaceX is proving private companies don’t need it to provide this service to rural areas — this decision is clearly political, driven by the hate of Elon Musk among Democrats and the Biden administration. They don’t care that SpaceX is a successeful private company providing tens of thousands of jobs as well as good products to Americans. Musk does not support them, and so he must be squashed.
Readers!
Please consider supporting my work here at Behind the Black. Your support allows me the freedom and ability to analyze objectively the ongoing renaissance in space, as well as the cultural changes -- for good or ill -- that are happening across America. Fourteen years ago I wrote that SLS and Orion were a bad ideas, a waste of money, would be years behind schedule, and better replaced by commercial private enterprise. Only now does it appear that Washington might finally recognize this reality.
In 2020 when the world panicked over COVID I wrote that the panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Only in the past year have some of our so-called experts in the health field have begun to recognize these facts.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
You can support me either by giving a one-time contribution or a regular subscription. There are four ways of doing so:
1. Zelle: This is the only internet method that charges no fees. All you have to do is use the Zelle link at your internet bank and give my name and email address (zimmerman at nasw dot org). What you donate is what I get.
2. Patreon: Go to my website there and pick one of five monthly subscription amounts, or by making a one-time donation.
3. A Paypal Donation or subscription:
4. Donate by check, payable to Robert Zimmerman and mailed to
Behind The Black
c/o Robert Zimmerman
P.O.Box 1262
Cortaro, AZ 85652
You can also support me by buying one of my books, as noted in the boxes interspersed throughout the webpage or shown in the menu above.
Hello Bob,
In fact, one of the dissenting commissioners, Brendan Carr, has just put out a lengthy statement alleging that this is denial is, in fact, political. You can see a copy of his statement at the Twitter link below. It might be worth adding this to the post!
https://twitter.com/KobeissiLetter/status/1734758589636477152
Richard M: You just did, by your comment. Thank you.
Starlink has indeed failed to “demonstrate that it could deliver the promised service”, as long as you understand that “the promised service” is lots of press conferences where various politicians, activists, and non-profits get together and make various promises as they pocket a bunch of taxpayer funds. Delivering a viable commercial product goes directly against that, so of course Starlink must be stopped.
Fascinating that this article appears in Business Insider, a publication that has, in general, been particularly hostile to Elon Musk and all of his works. Musk’s enterprises, of course, famously buy no ads in either digital or print media while his competitors do so in both.
His problem is he built it and proved it worked before asking for the cash.
If he had promised it and slowly delivered it he would have gotten the government cash.
His best bet is to no longer even ask for it. He can make money without it faster.
Now expanding into the southern hemisphere he could ask those nations there for a little cash grease to get more satellites covering those areas.
Starlink is available in Australia. A couple of weeks ago I set a terminal up for some friends. Very easy although you do need to have some idea of how a wireless network works. The friends are VERY happy with it.
The problem with solving a problem is that the government can no longer use that problem as an excuse to take more money and power.
My home in southern Illinois has Starlink. We started with very respectable speeds (180/40) but now get half of that, and less in the evenings. Lots of new subscribers in the eastern U.S. and still not enough satellites. What we have now is still better than Frontier and other rural providers.
We really need Starship up and running so that SpaceX can throw a few thousand more satellites up there quickly.
tangentially related–
The FCC’s “Affordable Connectivity Program,” provides a $30/month credit for internet access, for those who receive Medicaid or SNAP benefits.