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FCC Denies SpaceX's Appeal for $886M Rural Broadband Grant

Elon Musk Criticizes Decision as 'Unethical and Politically Partisan', While Other Government Entities Continue to Contract Starlink

  • The Federal Communications Commission (FCC) has rejected SpaceX's appeal to reinstate an $886 million grant to bring high-speed broadband to rural areas using Starlink satellites.
  • The FCC stated that SpaceX's Starlink failed to demonstrate its ability to deliver the service it promised in 2020, leading to the denial of the rural broadband subsidies.
  • SpaceX CEO Elon Musk criticized the FCC's decision as 'extremely unethical and politically partisan,' arguing that Starlink is the only company solving rural broadband at scale.
  • The FCC's decision has been criticized by Republican FCC Commissioners Brendan Carr and Nathan Simington, who allege that the decision was politically motivated and part of a larger pattern of administrative action against Musk's businesses.
  • Despite the FCC's decision, other components of the federal government are entering into multimillion dollar contracts with Starlink for high-speed connectivity for military operations and other uses.
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