The Federal Communications Commission has reaffirmed its decision to deny SpaceX $886 million in federal funding aimed at expanding Starlink’s internet service in rural US areas. The ruling, a 3-2 vote, upheld the FCC’s 2022 decision, citing SpaceX’s failure to demonstrate its capability to provide high-speed internet across 35 states, according to PCMag.
SpaceX sought the funding from the FCC’s Rural Digital Opportunity Fund (RDOF) to deliver internet speeds of 100Mbps download and 20Mbps upload in rural regions by December 2025. The FCC initially denied the funding due to concerns about Starlink’s satellite capacity and its ability to meet these speed targets.
In a 16-page review, the FCC detailed its extensive inquiries to SpaceX regarding Starlink’s service capabilities. The commission found that SpaceX did not adequately address these queries. The FCC also criticized SpaceX for questioning the use of third-party data from Ookla’s Speedtest.net, which indicated a decline in Starlink’s internet speeds in 2022.
Parts of the FCC’s review remain redacted, but available sections reveal SpaceX’s efforts to assure the commission of meeting speed goals, citing internal plans and the deployment of next-generation satellites via the upcoming Starship vehicle. However, these assurances did not sway the FCC.
SpaceX criticized the decision, stating, “This decision directly undermines the goal of RDOF: to connect unserved and underserved Americans.” The company argued that Starlink is a leading option, potentially the best, for achieving RDOF’s objectives, especially in rural and remote areas lacking reliable, affordable high-speed internet.
Two Republican FCC commissioners, Brendan Carr and Nathan Simington, dissented from the decision. Carr suggested the denial was part of a broader administrative action against Elon Musk’s businesses, while Simington highlighted Starlink’s proven technology and its growing subscriber base, including many in underserved areas.
Meanwhile, Ookla’s latest data shows Starlink’s median download speeds in the US have been relatively stable, averaging around 65Mbps over the past year, with recent increases to 79 Mbps.
