Learn about the FCC’s decision to deny SpaceX’s $885 million Starlink appeal for the Rural Digital Opportunity Fund, detailing the reasons for rejection and Commissioner Brendan Carr’s opposing views on this crucial top-funding issue Speed.
The Federal Communications Commission (FCC) has decided not to reverse its earlier decision to reject SpaceX’s winning bid for the Rural Digital Opportunity Fund (RDOF) program.
The company budgeted more than $885.5 million through the program, which was expected to partially cover the costs of providing high-speed broadband access to unserved rural communities.
More than eighteen months after the end of the RDOF auction, in August 2022, AT&T refused SpaceX’s winning offer for the first time.
SpaceX challenged the decision, which related to the Starlink satellite broadband offering in low Earth orbit (LEO), shortly after AT&T announced its rejection.
Rationale for FCC rejection
The Federal Communications Commission (FCC) said it concluded that SpaceX did not provide enough support to support its claim that its low Earth orbit (LEO) system could provide the promised service.
According to Jessica Rosenworcel’s press release regarding the appeal decision: “The FCC’s mission is to ensure consumers around the world have access to reliable, affordable broadband. The agency also has a responsibility to be a good steward of limited state funds intended to expand rural broadband access, not to fund applicants who do not meet basic program requirements.
“The FCC followed a careful legal, technical, and policy review to determine that this applicant failed to meet its burden of being entitled to nearly $900 million in universal service funds during almost a decade.”
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Commissioner Carr’s counterargument
Nonetheless, not all FCC commissioners agreed with the decision. Commissioner Brendan Carr said the commission was wrong to reject SpaceX’s appeal in its remarks was sent with the review order denying the appeal.
Brendan Carr questioned the logic of the commission’s concerns about whether SpaceX could provide the speed needed to meet its supply obligations, given that the company has not yet reached the required speed.
Carr said: “It would be like watching a NASCAR pace lap of the race, then predicting that the cars will never exceed 50 mph.
Additionally, he argued that the expenses of implementing non-LEO options would be significantly higher.
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