{"id":12110,"date":"2022-08-11T14:44:00","date_gmt":"2022-08-11T14:44:00","guid":{"rendered":"https:\/\/scienceandnerds.com\/2022\/08\/11\/fcc-rejects-starlinks-bid-for-rural-internet-subsidies-due-to-its-600-satellite-dish\/"},"modified":"2022-08-11T14:44:01","modified_gmt":"2022-08-11T14:44:01","slug":"fcc-rejects-starlinks-bid-for-rural-internet-subsidies-due-to-its-600-satellite-dish","status":"publish","type":"post","link":"https:\/\/scienceandnerds.com\/2022\/08\/11\/fcc-rejects-starlinks-bid-for-rural-internet-subsidies-due-to-its-600-satellite-dish\/","title":{"rendered":"FCC rejects Starlink\u2019s bid for rural internet subsidies due to its $600 satellite dish"},"content":{"rendered":"

Source: https:\/\/www.theverge.com\/2022\/8\/10\/23300301\/fcc-rejects-starlink-spacex-application-885-million-rural-broadband-subsidies-elon-musk<\/a>
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The Federal Communications Commission (FCC) has rejected Starlink\u2019s application<\/a> for $885 million in federal subsidies that it would use to provide satellite internet to broadband customers in rural areas. The FCC cites the SpaceX-owned company\u2019s $600 dish and states that Starlink \u201cfailed to demonstrate\u201d that it \u201ccould deliver the promised service.\u201d<\/p>\n

The funding is part of the broader $9.2 billion Rural Digital Opportunity Fund that provides an incentive for telecom companies to extend internet service to rural and underserved locations. In 2020, Starlink won an initial $885.5 million subsidy<\/a> as part of a Phase 1 rollout of the program. The FCC also rejected LTD Broadband\u2019s bid for the funding after it initially received $1.3 billion in 2020.<\/p>\n

\u201cStarlink\u2019s technology has real promise,\u201d FCC chair Jessica Rosenworcel explains. \u201cBut the question before us was whether to publicly subsidize its still developing technology for consumer broadband \u2014 which requires that users purchase a $600 dish \u2014 with nearly $900 million in universal service funds until 2032.\u201d <\/p>\n

Starlink increased the price of its starter kit and internet service<\/a> earlier this year. To get set up, Starlink users now have to pay a $599 upfront fee for the satellite dish (dubbed Dishy McFlatface) on top of the $110 per month price for internet service. (It previously cost $499 for the starter kit and $99 per month.)<\/p>\n

Last year, the FCC warned Starlink and other companies<\/a> that subsidies couldn\u2019t be used to add connectivity to \u201cparking lots and well-served urban environments.\u201d A report from the media policy organization Free Press<\/a> revealed that $111 million of Starlink\u2019s funding was set to go to urban areas that don\u2019t need the additional connectivity. In an effort to \u201cclean up\u201d the program, the FCC asked providers to give up funding for areas that aren\u2019t in need of service.<\/p>\n