FCC denies SpaceX nearly $900M in internet service funding2022-08-10 20:04 by Daniela
Tags: FCC, SpaceX
The Federal Communications Commission (FCC) has rejected Starlink's application for $885 million in federal subsidies that it would use to provide satellite internet to broadband customers in rural areas.
Starlink was tentatively awarded the Rural Digital Opportunity Fund (RDOF) grant in December 2020. But the satellite provider still needed FCC approval of a long-form application to receive the money, which is intended for areas with little or no high-speed broadband access.
In a press release, the FCC said both Starlink and LTD Broadband - another company that initially was awarded $1.3 billion in subsidies under the program - "failed to demonstrate that the providers could deliver the promised service."
"We must put scarce universal service dollars to their best possible use as we move into a digital future that demands ever more powerful and faster networks. We cannot afford to subsidize ventures that are not delivering the promised speeds or are not likely to meet program requirements," FCC Chair Jessica Rosenworcel said in a statement.
Rejecting SpaceX's current bid means it will be even longer before a subsidized service could bring more broadband access to rural areas.
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