FCC Denies Starlink's $885.5M Rural Broadband Subsidy

SpaceX's Starlink Fails to Meet FCC's Program Requirements, Sparking Dissent Within Commission and Criticism from Elon Musk

SpaceX's Starlink satellite internet service has been denied a $885.5 million subsidy from the Federal Communications Commission (FCC) for the second time. The subsidy was part of the Rural Digital Opportunity Fund (RDOF) program, aimed at expanding broadband service in rural areas.
The FCC stated that Starlink failed to demonstrate that it could deliver the promised service, citing SpaceX's failed attempts to launch its Starship rocket and Starlink's inability to meet the program's requirements.
SpaceX had previously won the bidding to provide high-speed internet service to 642,000 rural locations in 35 states. However, the FCC found numerous financial and technical deficiencies in the proposal and the company's operations.
Republican FCC Commissioners Brendan Carr and Nathan Simington dissented from the decision, suggesting that the Biden administration's anger toward Elon Musk was to blame. Carr termed the move as 'regulatory harassment'.
Elon Musk responded to the FCC's decision, stating that Starlink is the only company actually solving rural broadband at scale and suggested that the program should be dissolved and the funds returned to taxpayers instead.