The U.S. Federal Communications Commission has reaffirmed its 2022 decision to deny $885.5 million in rural broadband grants to Starlink, SpaceX's satellite internet unit.
The FCC said that the decision impacting Elon Musk's space company was based on the fact that Starlink did not meet basic program requirements and that Starlink failed to demonstrate that it could provide the promised service after SpaceX's decision had contested in 2022. “The FCC has conducted a thorough review. “We have conducted a legal, technical and policy review to determine that this applicant has failed in its mission,” said FCC Chairwoman Jessica Rosenworcel.
The FCC cited SpaceX's failure to successfully launch its Starship rocket as one of the reasons, stating that “the uncertainty of future Starship launches could impact Starlink's ability to meet its obligations.” The FCC halted funding in August 2022 based on speed data after Starlink agreed to provide high-speed internet service to 642,000 rural homes and businesses in 35 states.
SpaceX said it was “deeply disturbed and perplexed” by the FCC's decision, adding that Starlink was “clearly one of the best options – probably the best option” to achieve the rural internet program's goals.
The two Republican commissioners of the five-member FCC expressed disagreement with the decision, saying the FCC unfairly forced SpaceX to meet its 2025 goals three years early and suggesting that the Biden administration's anger at Mr. Musk for that be responsible. FCC Commissioner Brendan Carr said the commission joins “the growing list of administration agencies taking action against Elon Musk's companies” and said the decision “certainly fits the FCC's pattern of regulatory harassment by the Biden administration.”
Elon Musk said in a post on X that the FCC's decision “makes no sense.” “Starlink is the only company that is actually solving the problem of large-scale broadband coverage in rural areas! They should probably dismantle the program and return the funds to taxpayers, but certainly not give them to those who won't do the work.”
Republican FCC Commissioner Nathan Simington, noting that Starlink had about two million subscribers as of September 2023, added: “SpaceX continues to launch more satellites into orbit each month, which should lead to even faster and more reliable service.”
Source: United States Federal Communications Commission (FCC).
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