FCC's rejection of Starlink subsidy

Extracted Attributes

• Subsidy Value

  $885.5 million USD

• Funding Program

  Rural Digital Opportunity Fund (RDOF)

• Geographic Scope

  35 U.S. states

• Target Locations

  642,925 rural homes and businesses

• Technical Requirement

  100 Mbps download and 20 Mbps upload speeds

• Primary Reason for Rejection

  Failure to demonstrate technical and financial ability to meet program requirements

Timeline

• SpaceX is conditionally awarded $885.5 million in the FCC's Rural Digital Opportunity Fund reverse auction. (Source: Broadband Breakfast)

  2020-12-07

• The FCC Wireline Competition Bureau rejects Starlink's long-form application for the subsidy. (Source: Ars Technica)

  2022-08-10

• SpaceX files an Application for Review to appeal the FCC's rejection of the subsidy. (Source: FCC DA 24-883)

  2022-09-09

• The FCC commissioners officially affirm the decision to deny the $886 million subsidy to Starlink. (Source: Ars Technica)

  2023-12-12

• The All-In Podcast discusses the rejection as part of a pattern of regulatory harassment against Elon Musk. (Source: Document eb4480db-8906-408f-b8da-c7f2622c98ce)

  2023-12-15

Starlink

Starlink is a satellite internet constellation operated by Starlink Services, LLC, an international telecommunications provider that is a wholly owned subsidiary of American aerospace company SpaceX, providing coverage to around 150 countries and territories. It also aims to provide global mobile broadband. Starlink has been instrumental to SpaceX's growth. SpaceX began launching Starlink satellites in 2019. As of May 2025, the constellation consists of over 7,600 mass-produced satellites in low Earth orbit (LEO) that communicate with designated ground transceivers. Starlink comprises 65% of all active satellites. Nearly 12,000 satellites are planned, with a possible later extension to 34,400. SpaceX announced reaching over 1 million subscribers in December 2022, 4 million subscribers in September 2024 and 9 million subscribers in December 2025. The SpaceX satellite development facility in Redmond, Washington, houses Starlink research, development, manufacturing, and orbit control facilities. In May 2018, SpaceX estimated the cost of designing, building and deploying the constellation would be at least US$10 billion. Revenues from Starlink in 2022 were reportedly $1.4 billion with a net loss. In May 2024 that year's revenue was expected to reach $6.6 billion but by December the prediction was raised to $7.7 billion. Revenue was then expected to reach $11.8 billion in 2025. Financial statements filed with the Netherlands Chamber of Commerce revealed Starlink 2024 revenue only reached $2.7 billion, about two-thirds short of the latest prediction, for a profit of $72 million. Starlink has been extensively used in the Russo-Ukrainian War, a role for which it has been contracted by the United States Department of Defense. Starshield, a military version of Starlink, is designed for government use. Starlink's technology is reportedly a front-runner for the U.S. Golden Dome missile defense system that involves placing weapons into orbit. Astronomers raised concerns about the effect the constellation would have on ground-based astronomy, and how the satellites contribute to an already congested orbital environment. SpaceX has attempted to mitigate astrometric interference concerns with measures to reduce the satellites' brightness during operation. The satellites are equipped with Hall-effect thrusters allowing them to raise their orbit, station-keep, and de-orbit at the end of their lives. They are also designed to autonomously and smoothly avoid collisions based on uplinked tracking data.

Web Search Results

• SpaceX blasts FCC as it refuses to reinstate Starlink's $886 million ...

  Starlink’s grant was intended to subsidize deployment to 642,925 rural homes and businesses in 35 states. The August 2022 ruling that rejected the grant called Starlink a “nascent LEO [low Earth orbit] satellite technology” with “recognized capacity constraints.” The FCC questioned Starlink’s ability to consistently provide low-latency service with the required download speeds of 100Mbps and upload speeds of 20Mbps. [...] The Rosenworcel FCC rejected the long-form application in August 2022, and SpaceX appealed the decision the next month. The FCC also rejected the long-form application of LTD Broadband, a fixed wireless provider that was originally slated to get $1.3 billion. LTD recently renamed itself “GigFire.” [...] The FCC announced yesterday that it rejected SpaceX’s appeal. “The FCC followed a careful legal, technical and policy review to determine that this applicant had failed to meet its burden to be entitled to nearly $900 million in universal service funds for almost a decade,” FCC Chairwoman Jessica Rosenworcel said.

• FCC Still a No on Broadband Subsidies for Musk's Starlink

  The Federal Communications Commission said Friday – for the third time in two years – that Elon Musk's Starlink satellite internet service will not receive nearly $900 million in subsidies to get thousands of rural U.S. homes and businesses online. [...] In 2020, the FCC conducted a reverse auction in which Starlink parent SpaceX owned by Musk was conditionally awarded about $885.5 million to serve 640,000 rural homes and businesses across 35 states. In August 2022, the FCC conducted a second review as prescribed in the RDOF rules and determined that Starlink could not furnish 100/20 Mbps low-latency service and revoked the award at the bureau level. The FCC commissioners in December 2023 affirmed the bureau's decision. [...] Weisiger's argument that awarding Starlink RDOF money would reduce the financial burden on the $8.1 billion Universal Service Fund was an issue outside the scope of the FCC’s decisions related to Starlink’s ability to meet the RDOF’s post-auction eligibility criteria, Harkrader said.

• Starlink left in the cold: FCC subsidy denial stands - Teslarati

  However, in 2022, SpaceX was denied from securing its subsidy reward from the FCC. The agency rejected SpaceX’s application for broadband subsidies, citing that the aerospace company failed to meet the program’s requirements and convince the FCC to fund risky proposals. Advertisement --> In a press release, the FCC noted that SpaceX has “failed to demonstrate that providers could deliver the promised service.” [...] However, in 2022, SpaceX was denied from securing its subsidy reward from the FCC. The agency rejected SpaceX’s application for broadband subsidies, citing that the aerospace company failed to meet the program’s requirements and convince the FCC to fund risky proposals. Advertisement --> In a press release, the FCC noted that SpaceX has “failed to demonstrate that providers could deliver the promised service.” [...] However, in 2022, SpaceX was denied from securing its subsidy reward from the FCC. The agency rejected SpaceX’s application for broadband subsidies, citing that the aerospace company failed to meet the program’s requirements and convince the FCC to fund risky proposals. Advertisement --> In a press release, the FCC noted that SpaceX has “failed to demonstrate that providers could deliver the promised service.”

• [PDF] Federal Communications Commission DA 24-883

  In this order, we address a Petition for Reconsideration1 (Petition) of the Commission’s order2 affirming our decision to deny Starlink’s application to be authorized to receive broadband deployment subsidies from the Rural Digital Opportunity Fund (RDOF or Auction 904).3 The Petition seeks to reverse the Commission’s decision affirming the conclusion by the Wireline Competition Bureau (the Bureau) that Starlink did not demonstrate that it was eligible to receive RDOF support. Alternatively, [...] the Petition seeks a waiver of Commission rules to allow Starlink to receive the RDOF funding it would have received had it been deemed eligible for support. As we discuss in more detail below, we dismiss the Petition on procedural grounds, and we reject the petitioner’s request for a waiver. [...] concluded, after careful review of Starlink’s long-form application, that Starlink was not eligible for RDOF support because Starlink failed to demonstrate that it had the technical and financial ability to serve the specific areas where it won support.13 As a result, Starlink was found in default and was not authorized to receive RDOF support.14 Starlink filed an Application for Review (AFR) of the Bureau’s decision, which the Commission denied, agreeing with the Bureau’s conclusion and

• FCC Reaffirms its Decision to Deny Starlink $886M Subsidy - Reddit

  ## Top Posts [...] r/SpaceXLounge icon A banner for the subreddit r/SpaceXLounge icon Welcome to r/SpaceXLounge, the sister subreddit to r/SpaceX, and a place for relaxed and laid-back discussion. We recommend Old Reddit with r/SpaceXLounge. This subreddit is not an official outlet for SpaceX information. This is a fan-run subreddit. Employment posts will be removed. # FCC Reaffirms its Decision to Deny Starlink $886M Subsidy r/SpaceXLounge - FCC Reaffirms its Decision to Deny Starlink $886M Subsidy [...] Targeting 25 Starship Launches: They are also targeting up to 25 Starship launches, depending on regulatory approvals and test outcomes. "They say they're targeting 180 Falcon launches, and on the verge of getting permission for up to 25 Starship launches." ### Additional Goals