FCC rejects Starlink’s bid for rural internet subsidies due to its $600 satellite dish
has rejected Starlink’s application
for $885 million in federal subsidies that it would use to provide satellite internet to broadband customers in rural areas. The FCC states that the SpaceX-owned company’s dish is simply too expensive and that Starlink “failed to demonstrate” that it “could deliver the promised service.” The funding is part of the broader $9.2 billion Rural Digital Opportunity Fund that provides an incentive for telecom companies to extend internet service to rural and underserved locations. In 2020,as part of a Phase 1 rollout of the program. The FCC also rejected LTD Broadband’s bid for the funding after it initially received $1.3 billion in 2020.
“Starlink’s technology has real promise,” FCC chair Jessica Rosenworcel explains. “But the question before us was whether to publicly subsidize its still developing technology for consumer broadband — which requires that users purchase a $600 dish — with nearly $900 million in universal service funds until 2032.”earlier this year. To get set up, Starlink users now have to pay a $599 upfront fee for the satellite dish on top of the $110 per month price for internet service.
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