Elon Musk’s Starlink reportedly loses $886M subsidy in a bid to expand its access to rural internet. The FCC wasn’t convinced enough that the division of SpaceX ‘could deliver the promised service.’
Elon Musk’s Starlink Reportedly loses $886M Subsidy
The US federal communications commission in a reversal of a decision made in 2020 has decided to reject the application of Starlink for $886 million in subsidies in order to expand its rural broadband coverage. The commission in a release on Wednesday said that Starlink “failed to meet program requirements” and also that the program was too risky.
“Starlink’s technology has real promise, 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,” said, Jessica Rosenworcel, the chairwoman of FCC.
Another applicant, LTD Broadband also was on the list of companies to lose their subsidy application as it reportedly loses its subsidy of $1.3 million.
What Is Starlink
Starlink helps to deliver internet access through its fleet of over 2,000 low-orbit satellites which beams web data down to its satellite dishes even in rural areas that do not have ground-laid internet. Starlink is not the only satellite internet provider but it is, however, the fastest as per the internet service analysts at Ookla.
The Cost of Starlink
The prices of Starlink increased considerably in the early parts of this year. Customers were made to pay a one-time equipment fee of $599 for the Starlink satellite dish. And the internet connection on the other hand costs $110 per every month