(Credit: Getty Images)
The FCC has denied SpaceX's appeal to receive $886 million in federal funding to expand Starlink access in rural areas of the US.
The FCC today “reaffirmed” its original decision from 2022 to deny SpaceX the funding, saying the company failed to prove it can supply high-speed internet to users in 35 states.
“After careful review, we find that the [Wireline Competition] Bureau followed Commission guidance and correctly concluded that Starlink is not reasonably capable of offering the required high-speed, low latency service throughout the areas where it won auction support,” the FCC said in a 3-2 ruling.
To receive the funding from the FCC’s Rural Digital Opportunity Fund (RDOF) SpaceX had to show that Starlink could supply 100Mbps download speeds and 20Mbps upload speeds to the rural areas by December 2025. A year ago, the FCC denied the funding over doubts that Starlink could do that amid concerns about strained satellite capacity.
The commission's 16-page review of SpaceX's appeal found that prior to denying the funds, FCC staff "sent Starlink multiple, detailed inquiries” about the satellite internet service. However, the commission’s review claims SpaceX failed to fully address questions.
The commission also addressed how SpaceX's appeal faulted the FCC for relying on third-party data from Ookla’s Speedtest.net service to show that the internet speeds for Starlink declined in 2022. In response, the FCC said: “Starlink does not explain what other data source the Bureau should have used in lieu of using the most recently available data.”
Unfortunately, parts of the commission’s review are heavily redacted. But based on the available text, it seems like SpaceX tried to provide assurances that it could reach the speed goals while citing the company’s internal and confidential plans. This includes SpaceX’s efforts to use its upcoming Starship vehicle to deploy next-generation Starlink satellites. Nevertheless, the assurances weren’t enough to convince the FCC.
(FCC)"As we discuss in more detail below, the Bureau ultimately disagreed with Starlink’s projections,” the text notes.
In response, SpaceX says "this decision directly undermines the very goal of RDOF: to connect unserved and underserved Americans. Starlink is demonstrably one of the best options—likely the best option—to accomplish the goals of RDOF. Indeed, Starlink is arguably the only viable option to immediately connect many of the Americans who live and work in the rural and remote areas of the country where high-speed, low-latency internet has been unreliable, unaffordable, or completely unavailable, the very people RDOF was supposed to connect.”
Two Republican FCC commissioners dissented with the decision. Brendan Carr even suggested that the FCC denied the $886 million in subsidies because the Biden administration wants to crack down on Elon Musk and his companies. "Today, the Federal Communications Commission adds itself to the growing list of administrative agencies that are taking action against Elon Musk’s businesses,” he said in a statement.
Carr accused the FCC of holding SpaceX to unfair standards in meeting the 2025 speed goal while noting that Starlink has secured Pentagon contracts to supply broadband to the US military.
Commissioner Nathan Simington added that Starlink has already become a proven technology, despite the FCC’s reservations. “The proof is the millions of subscribers—many in areas that other providers and the FCC have failed to serve for decades—already receiving high-quality broadband service through Starlink. And SpaceX continues to put more satellites into orbit every month, which should translate to even faster and more reliable service,” he said.
In the meantime, Ookla’s latest Speedtest.net data shows that the median download speeds for Starlink in the US remained largely flat over the past year at around 65Mbps. But in the past three months, Starlink speeds have been getting faster, moving from 70Mbps to 79 Mbps.
Disclosure: Ookla is owned by PCMag parent company Ziff Davis.