THE DECISION

Satellite Internet, FCC withdraws funding to Starlink

•             Telco

•             Ultra-broadband

The US authority decides to deny Elon Musk's company  and Ltd Broadband the requested funds (respectively 900 million and 1.3 billion dollars) as subsidies to bring connectivity to rural areas: "they have failed to prove that they can provide the promised service"

11 Aug 2022

E. L.

It is an abrupt stop that imposed by the US Federal Communication Commission on Starlink and Ltd Broadband: the communications authority has in fact decided not to pay the two companies the funds requested, respectively 900 million dollars and 1.3 billion dollars, to bring broadband connectivity through satellite services in rural areas of North America. As a reason for this decision , the FCC pointed out that both Starlink nor Ltd Broadband "have managed to demonstrate as a provider that they can provide the promised service".

SpaceX had obtained the funds in December 2020 in an auction held by the FCC itself, for a total value of 9.2 billion dollars. The tender benefited from the budget made available by the Rural digital opportunities fund of the communications regulator. The company led by Musk had applied for funding with which it would bring satellite internet service to nearly 650,000 homes in 35 U.S. states, covering the most remote or isolated areas not yet reached by broadband.

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