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FCC Denies SpaceX $885 Million in Subsidies for Rural Starlink Expansion

posted by janrinok on Saturday August 13 2022, @08:03PM   Printer-friendly

upstart writes:

FCC Denies SpaceX $885 Million in Subsidies for Rural Starlink Expansion - ExtremeTech:

The Federal Communications Commission (FCC) has announced that Elon Musk's SpaceX will not get the $885.5 million subsidy it was previously granted for Starlink internet services. The money was part of the broader $9.2 billion Rural Digital Opportunity Fund and was intended to beef up connectivity in underserved rural areas of the US. However, FCC chair Jessica Rosenworcel doesn't think the agency should "publicly subsidize its still developing technology," which requires a $600 satellite dish.

SpaceX was one of 180 companies vying for the funds during the 2020 bidding process, but only two have been dropped from the program. In addition to SpaceX, LTD Broadband has lost its $1.3 billion grant. This was just the first phase of the Rural Digital Opportunity Fund rollout, which will run through the early 2030s. It's possible SpaceX will participate in future phases of the program, but it's going to have to address some of its business practices first.

The FCC cited SpaceX's fees as a primary reason for pulling the subsidy. At launch, SpaceX required all subscribers to pay $500 for the satellite dish that connects them to the Starlink megaconstellation. However, SpaceX raised that fee to $600 recently. The monthly fee for service also jumped from $99 to $110. The FCC thinks the limited universal service funds should go to less expensive connectivity options.

This announcement doesn't come completely out of left field. Last year, the FCC warned SpaceX and other bidders that the subsidies could not be used to cover "parking lots and well-served urban environments." SpaceX was allegedly set to use $111 million of the subsidy to expand in cities that already had plenty of internet access.

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  • (Score: 1) by Runaway1956 on Sunday August 14 2022, @01:52AM

    by Runaway1956 (2926) Subscriber Badge on Sunday August 14 2022, @01:52AM (#1266523) Homepage Journal

    Starlink isn't a whole lot different than any of the other ISPs in wanting to take money meant for rural build out and use it in the cities where there's more customers.

    That part looks pretty silly to me. Musk has actually built out to the rural areas. If you have the $600 fee for the satellite modem, you're good to go, no matter how remote you might be. Death Valley, Pike's Peak, the Mississippi delta, Mt. Katahdin, you name it. The satellites have you covered. Better than satellite TV, you don't need a clear view of the southern sky to be covered, he has spaced those orbits out so they sweep most latitudes. (If you live in a deep valley, surrounded by tall peaks, you may still be screwed unless and until a sat finds it's way right over you.)

    I'll stick with TFA, and accept the speed and the cost as major factors in the denial.

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