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.
On Christmas Eve 1968 three Americans became the first humans to visit another world. What they did to celebrate was unexpected and profound, and will be remembered throughout all human history. Genesis: the Story of Apollo 8, Robert Zimmerman's classic history of humanity's first journey to another world, tells that story, and it is now available as both an ebook and an audiobook, both with a foreword by Valerie Anders and a new introduction by Robert Zimmerman.
The ebook is available everywhere for $5.99 (before discount) at amazon, or direct from my ebook publisher, ebookit. If you buy it from ebookit you don't support the big tech companies and the author gets a bigger cut much sooner.
The audiobook is also available at all these vendors, and is also free with a 30-day trial membership to Audible.
"Not simply about one mission, [Genesis] is also the history of America's quest for the moon... Zimmerman has done a masterful job of tying disparate events together into a solid account of one of America's greatest human triumphs."--San Antonio Express-News
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.
On Christmas Eve 1968 three Americans became the first humans to visit another world. What they did to celebrate was unexpected and profound, and will be remembered throughout all human history. Genesis: the Story of Apollo 8, Robert Zimmerman's classic history of humanity's first journey to another world, tells that story, and it is now available as both an ebook and an audiobook, both with a foreword by Valerie Anders and a new introduction by Robert Zimmerman.
The ebook is available everywhere for $5.99 (before discount) at amazon, or direct from my ebook publisher, ebookit. If you buy it from ebookit you don't support the big tech companies and the author gets a bigger cut much sooner.
The audiobook is also available at all these vendors, and is also free with a 30-day trial membership to Audible.
"Not simply about one mission, [Genesis] is also the history of America's quest for the moon... Zimmerman has done a masterful job of tying disparate events together into a solid account of one of America's greatest human triumphs."--San Antonio Express-News
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.