SpaceX to Fight FCC's Denial of $886 Million in Funding to Starlink
SpaceX is demanding the FCC reverse its decision to deny $886 million in federal funding to Starlink.
On Friday, the company filed(Opens in a new window) a 36-page formal appeal, which alleges the FCC unfairly judged SpaceX’s satellite internet system in determining whether it should receive federal subsidies from the commission’s Rural Digital Opportunity Fund (RDOF).
“The decision should not be allowed to stand, leaving the people in these rural areas across our country behind yet again,” the company said.
In December 2020, the FCC tentatively awarded SpaceX’s Starlink system $886 million to deliver high-speed broadband in underserved areas across 35 states. But after reviewing SpaceX’s long-form application, the commission last month decided to reject the funding, pointing to Starlink’s high costs to consumers and doubts over whether it could supply fast enough speeds.
Specifically, the FCC described Starlink as "nascent LEO (low-Earth orbiting) satellite technology" that faced "recognized capacity constraints." The RDOF’s goal is to supply gigabit internet speeds to over 85% of the selected rural locations and at least 100Mbps download speeds for all 99.7% of the locations in the coming years.
SpaceX initially remained mum on the FCC’s decision. But on Friday, the company published a formal appeal, which lists the various reasons why the FCC’s decision is allegedly flawed. According to SpaceX, the FCC has a “clear bias towards fiber” over using satellites to deliver high-speed broadband, despite Starlink having a robust record of success and quick deployment.
The company also claims it submitted internal data to the FCC that shows Starlink will be able to achieve the speed goals for the RDOF program by 2025.
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