U.S. Agency Rejects $900 Million Subsidy For Starlink

The US Federal Communications Commission reaffirmed its 2022 decision on Tuesday to deny SpaceX's satellite internet unit, Starlink, $885.5 million in rural broadband subsidies, as reported by David Shepardson for Reuters.

The FCC stated that the decision affecting Elon Musk's space company was based on Starlink's failure to meet basic program requirements. I Photo: Offical SpaceX Photos Flickr

The FCC stated that the decision affecting Elon Musk's space company was based on Starlink's failure to meet basic program requirements. Starlink could not demonstrate its ability to deliver the promised service after SpaceX had challenged the 2022 decision.

FCC Chairwoman Jessica Rosenworcel said, "The FCC followed a careful legal, technical, and policy review to determine that this applicant had failed to meet its burden."

The FCC cited SpaceX's failure to successfully launch its Starship rocket among its reasons, stating, "the uncertain nature of Starship's future launches could impact Starlink's ability to meet" its obligations.

The FCC rescinded the funding in August 2022 based on speed-test data after Starlink had agreed to provide high-speed Internet service to 642,000 rural homes and businesses in 35 states.

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