The US Federal Communications Commission has rejected SpaceX’s application for an $888.5 million government subsidy for Starlink to develop satellite internet service in rural areas. Naturally, the commission also presented its own arguments for refusing subsidies.
According to Jessica Rosenworcel, the chairman of the US Federal Communications Commission, the main two reasons for Starlink’s rejection are the low speed of the Internet and the high cost of the service. However, the chairman of the Federal Communications Commission also noted that Starlink technology promises promising results.
Interestingly, in December 2020, the same commission gave Elon Musk’s Starlink a nearly $1 billion government subsidy. A $20 billion fund created by the Federal Communications Commission in 2020 was aimed at developing digital capabilities and providing high-speed Internet service in rural areas. However, it seems that after two years, Elon Musk’s Starlink is no longer as attractive to US regulators.
The Federal Communications Commission also rejected the subsidy application of fixed-wireless provider BroadBand. According to the regulator, the latter did not have the ability to adequately maintain the relevant infrastructure.
For reference, in order to use Starlink Internet service, customers need a $599 receiver. In addition, the subscriber must pay $110 per month for using the Internet.