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.
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.