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FCC rejects SpaceX request for almost $1 billion in rural Internet subsidies

According to statements from FCC Chairwoman Jessica Rosenworcel, SpaceX has "real promise" though Starlink is seen as something that's still developing.

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The Federal Communications Commission (FCC) has rejected a recent request from Elon Musk’s SpaceX for almost $1 billion in subsidies. The goal of requesting such substantial funds is cited as helping aid the company’s efforts in supporting rural broadband customers through the Starlink satellite internet network, as reported by outlets like CNBC.

This reason is also pointed to in regards to why the FCC rejected the request. In an accompanying press release, the FCC clarified that it had determined companies including Starlink and LTD Broadband “failed to demonstrate that the providers could deliver the promised service.”

Adding to this, SpaceX had previously been awarded a sizable $885.5 million as part of the FCC’s $9.2 billion auction back in December of 2020 as tied to the Rural Digital Opportunities Fund.

SpaceX headquarters at night showing the building and nearby SpaceX rocket structure.
© SpaceX | Wikimedia

Rosenworcel went on to add that Starlink is still “developing” and that SpaceX technology does have “real promise.” With this, it’ll be interesting to see if the FCC will consider future requests from SpaceX, should the company decide to pursue the matter again in the future.

As of the time of this writing, SpaceX has reportedly launched over 2,700 Starlink satellites, and the service has over 400,000 subscribers. For more on this, be sure to read through the full report on the FCC’s recent rejection of SpaceX’s subsidy request from CNBC.

And for more on what else SpaceX has been up to, check out some of our previous coverage including how the FCC previously approved SpaceX’s mobile Starlink internet service for use in vehicles.

Senior Editor

Morgan is a writer from the frozen wastelands of Maine who enjoys metal music, kpop, horror, and indie games. They're also a Tetris fanatic who's fiercely competitive in games like Tetris 99... and all games in general. But mostly Tetris. You can follow Morgan on Twitter @Author_MShaver.

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