Advanced Television

FCC rejects Musk’s application for $886m

August 11, 2022

By Chris Forrester

The FCC has turned down Elon Musk’s SpaceX request for an $886 million (€860m) grant as part of the US government’s massive $20.4 billion rural broadband subsidy scheme. The FCC had previously awarded the sum back in 2020, but that move has now been rejected.

In a statement, the FCC said the FCC said that two companies, SpaceX’s Starlink and another company LTD Broadband, “failed to demonstrate that the providers could deliver the promised service” needed to receive the subsidies.

Musk had promised that it could provide broadband by its Starlink service to 650,000 rural and underserved customers in 35 states.

“We must put scarce universal service dollars to their best possible use as we move into a digital future that demands ever more powerful and faster networks,” stated FCC Chair Jessica Rosenworcel. “We cannot afford to subsidise ventures that are not delivering the promised speeds or are not likely to meet programme requirements,”

However, this decision only covers Phase 1 of the scheme and related applications. Musk/SpaceX can still bid for aid in later rounds.

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