FCC Rejects Broadband Subsidy Funds For Starlink, SpaceX's Satellite Internet Unit

FCC chairman Jessica Rosenworcel.

JAKARTA - The United States Federal Communications Agency (FCC) on Tuesday, December 12 confirmed its decision to reject broadband subsidy funds of US$885.5 million (Rp13.8 trillion) for Starlink, SpaceX's satellite internet unit.

The FCC stated that the decision was based on Starlink's inability to meet the basic requirements of the program and that Starlink could not prove that it could provide the service as promised after SpaceX challenged the decision.

"The FCC Commission follows a careful legal, technical and policy review to determine that this applicant failed to fulfill his responsibilities," said FCC Chairman Jessica Rosenworcel.

The FCC lists several reasons including SpaceX's failure to launch a Starship rocket, and mentions "uncertain nature of future Starship launches could affect Starlink's ability to fulfill its obligations."

The decision was originally taken in August 2022 after rapid test data, when Starlink agreed to provide high-speed internet services for 642,000 homes and businesses in rural areas in 35 states.

SpaceX expressed its disappointment with the FCC's decision, calling Starlink "one of the best options, even a possible best option" to achieve the goal of the rural internet program.

The two Republican commissioners in five FCC members denied this decision, stating that the FCC should not force SpaceX to reach its 2025 target three years earlier and indicating that Joe Biden's administration's anger against Elon Musk could be the cause.

FCC Commissioner Brendan Carr said this decision was "in accordance with the pattern of abuse of Biden's administration regulations" and accused the FCC of participating in "an increasingly long list of administrative institutions taking action against Elon Musk's business."

Musk responded to the FCC's decision by saying that Starlink is the only company that has completely solved the problem of massive rural broadband. He argues that the program should be disbanded and funds returned to taxpayers, not channeled to those who do not finish the job