FCC Rejects Applications of SpaceX and LTD Broadband for $2.2 Billion in Rural Digital Opportunity Fund Subsidies
Applicants Failed to Meet Program Requirements and Convince FCC to Fund Risky Proposals
WASHINGTON, August 10, 2022 (FCC PR) —The Federal Communications Commission today announced that it is rejecting the long-form applications of LTD Broadband and Starlink to receive support through the Rural Digital Opportunity Fund program. The Commission determined that these applications failed to demonstrate that the providers could deliver the promised service. Funding these vast proposed networks would not be the best use of limited Universal Service Fund dollars to bring broadband to unserved areas across the United States, the Commission concluded.
“After careful legal, technical, and policy review, we are rejecting these applications. Consumers deserve reliable and affordable high-speed broadband,” said Chairwoman [Jessica] Rosenworcel. “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. We cannot afford to subsidize ventures that are not delivering the promised speeds or are not likely to meet program requirements.”
“Starlink’s technology has real promise,” continued Chairwoman Rosenworcel. “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.”
In the initial auction results announced December 7, 2020, LTD Broadband won $1,320,920,718.60, and Space Exploration Technologies Corp. (Starlink) won $885,509,638.40.
Although LTD was a relatively small fixed wireless provider before the auction, it was the largest winning bidder in the auction, submitting winning bids in 15 states. Subsequently, it failed to timely receive eligible telecommunications carrier status in seven states, rendering it ineligible in those states for support. Ultimately, the FCC review concluded that LTD was not reasonably capable of deploying a network of the scope, scale, and size required by LTD’s extensive winning bids.
The Commission separately announced that is ready to authorize $21,112,263 in broadband funding to three companies to deploy gigabit service to almost 15,000 locations in four states Tennessee, Texas, Utah, and Wyoming.
To date, the RDOF program has authorized more than $5 billion in funding to bring primarily fiber gigabit broadband service to over 3,000,000 locations in 47 states. With support from this program, hundreds of carriers have already begun deploying these future-proof networks to connect unserved areas.
28 responses to “FCC Rejects Applications of SpaceX and LTD Broadband for $2.2 Billion in Rural Digital Opportunity Fund Subsidies”
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Looking forward to SpaceX’s rebuttal. I’ve been hearing reports of people saying to service goes down to the 10 Mb/s range fairly often. Robert has been using it for some time. Maybe he’ll chime in.
Don’t forget, Andrew, the difference between megabits and megabytes.
Yes, I’m coming across people saying that they get 1.x MB/s when far away from urban centers with relays.
Ouch, that has to be frustrating. I’ve had the same thing happen sans Starlink at roadside stops; it probably feels worse at home.
Given what’s become of the internet and the commercial computing environment gone to pot, I’d keep my kids away from it as long as I could. It’s dumbing people down and making them functional instead of challenging them to expand their horizons. The internet and operating systems just suck worse and worse every year.
Yes, the new Generation is helpless without their Smart Phone Apps, just like a Borg that is unplugged from the Hive.
The internet is bad because Elon did not get his free billion dollars.
Only spacex fanboys.
Still better than what is available in most rural areas, and it’s available now. This is likely political with the established rural monopolies pulling in their political favors. I hope SpaceX fights it with a lawsuit.
The requirements to meet were hard and technical. If it’s as you claim Space X will win and probably have their attorneys fees paid. If it’s as you say a ruling with prejudice won’t be hard to get. I doubt they’d do anything so silly as to reject Starlink if it met the criteria. My bet is we’ll see if fell short in the areas that matter most.
The basic problem which the FCC likely has a problem understanding is that the Starlink is still being rolled out and as the number of satellites increase so will it’s capabilities, especially once Starship starts launching the next generation satellites. Instead they are used to the old fiber optics providers and likely wrote the program to benefit them.
Apparently the FCC commission didn’t weigh in on this, it was unilateral by Rosenworcel.
So while the FCC says that Starlink is not able to meet the needs of rural America the USAF just signed a contract with Starlink to provide it with Internet services in Europe and Africa on the grounds it is the only existing system capable of doing so…
Rocket jesus is slowly spiraling toward disaster. From a recent Time Magazine article:
“Musk admitted to his biographer Ashlee Vance that Hyperloop was all about trying to get legislators to cancel plans for high-speed rail in California—even though he had no plans to build it.”
“In crafting his future visions, Musk draws on the libertarian tendencies of Robert Heinlein and a technocratic longtermism inspired by Isaac Asimov’s Foundation series, not to mention the dreams of Nazi-turned-NASA rocket engineer Wernher von Braun. Future visions cribbed from the pages of science fiction—often of the dystopian variety—and reshaped to fit the desires of the richest man in the world don’t serve the broader public.”
“That’s exactly where we find ourselves now: having our future dictated by powerful people who seek to recreate the space colonies or dystopian virtual reality worlds they read about as kids without considering the consequences.”
“Kim Stanley Robinson- has called Musk’s plan “the 1920s science-fiction cliché of the boy who builds a rocket to the moon in his backyard” and one that’s dangerously distracting us from the real problems we face here on Earth.”
“The tech industry enjoys casting itself as our savior, delivering empowerment and convenience, but along with it has come an unprecedented expansion of surveillance, an erosion of workers’ rights, and the empowerment of white nationalist and fascist groups.
For years, Elon Musk sold us fantasies to distract from the reality of the future he’s trying to build, and to get people to accept his growing belligerence.“
These same people cited in the article would like to cancel *all* space programs, not just those run by Musk. Be careful what you wish for, you just might get it.
What are you wishing for? Spacex? Or Space?
I am all about Space. And in my view spacex is the worst thing that has ever happened to space exploration. Worse than both shuttle disasters.
So, thanks, but no thanks, I don’t need to be careful, just to tell the truth.
You are missing my point. In the article you quoted, there were phrases like:
“…dangerously distracting us from the real problems we face here on Earth.”
and:
“…not to mention the dreams of Nazi-turned-NASA rocket engineer Wernher von Braun”
These people are not only anti-Musk. They are anti-space period. Just because they don’t like Musk and you don’t like Musk doesn’t mean they would like your version of space. In fact, it’s clear from their comments they are anti any space exploration.
Ridiculous babbling.
A science fiction author who wrote a bestseller on terra-forming Mars is NOT anti-space. In fact, Space Solar Power is the ultimate solution to climate change,
As for von Braun….he was a Nazi. In fact, he was in the SS and it is known without a doubt that he repeatedly walked by slave laborers executed and hanging in his Dora rocket factory. He helped Amerca land on the Moon but you seem to be the one missing the point.
Until someone is doing better at it than SpaceX, SpaceX is “Space”.
“I don’t need to be careful, just to tell the truth.” <– Thing is, you are delusional.
Musk is your Cult God, along with Trump, you sociopath,
LOL….
No, I just know the value of $35/lb to LEO as opposed to $35k/lb to LEO.
35 pounds to LEO is like a religious chant to you. Bizarre and freakish.
That would be the difference between developing an off Earth economy and never developing space at all.
“Musk admitted to his biographer Ashlee Vance that Hyperloop was all about trying to get legislators to cancel plans for high-speed rail in California—even though he had no plans to build it.” <– As far as that goes, good for him. Whatever is legal and works to kill useless government spending is okay by all sane and honest people.
I bear in mind you’ve already admitted Gary, that as long as you as a .gov entangled employee get paid, you don’t care if the cost of space access stays north of $25k/lb.
Bear in mind that when you blow that dog whistle, you toxic sociopath troll, it is crystal clear that a Musk Cult member, Trumpist, and Climate Change denier, does not understand the concept of “caring” about anything except their twisted little far-right neo-fascist fantasy bubble of existence.
If your name is a dog whistle, you and you alone made it that.
Classic stalker….always, ALWAYS, blame the victim.
You freak.
Given that the whole subsidy program has pretty much been cancelled, and given that no one but SpaceX is going to be building out any infrastructure absent the subsidies, the Good Chairwoman has simply cleared any potential competitors out of SpaceX’s way. Starlink will continue its march through the boonies of the world – especially North America – limited only by user terminal production capacity and total network capacity on-orbit. I think Br’er Musk has just been tossed into the briar patch.
Unless prices come down, it will also be limited by cost. $500 for a terminal and $100/month is in no way worth it to me. My home service isn’t great (6Mb down, 512kb up), but it works fine for what I do from home. A local TelCo is putting fiber in out my way, also. When it arrives, my speeds will go to 45Mb up/down and my cost will go down by around $15 from what I’m currently paying AT&T for DSL. And I’ll be paying $45/month less than I could get StarLink for. I could go up to 100Mb/s for around $25 less than StarLink ($75). Or to 1Gb for just over twice that ($160).
Admittedly these won’t ever be options for many people, but I also don’t think the majority of people in some of those areas will or even can pay for StarLink.
All this is academic for me, because I expect fiber to get to me before StarLink does.