House Committee Investigates FCC’s Decision on Starlink Subsidies

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The U.S. House Oversight Committee is looking into the Federal Communications Commission’s (FCC) recent decision to deny SpaceX’s Starlink $885.5 million in rural broadband subsidies. The committee, led by Chair James Comer, has requested the FCC provide all relevant documents by October 21. This investigation aims to ensure the FCC’s decision-making process was transparent and not politically motivated.

In December 2020, the FCC tentatively awarded $9.2 billion to more than 300 companies to expand high-speed broadband across rural areas. Starlink was set to receive $885.5 million to provide service to 642,000 homes and businesses in 35 states. However, in August 2022, the FCC withdrew Starlink’s funding, citing concerns about its ability to meet program requirements.

The FCC argued that Starlink’s speed tests showed it could not reliably provide the necessary high-speed internet. Additionally, the proposal required users to purchase a $600 dish to start using the service. FCC Chair Jessica Rosenworcel reaffirmed the decision, emphasizing that Starlink’s data failed to meet both uplink and downlink speed standards.

Elon Musk, CEO of SpaceX, has called the decision “illegal” and criticized the FCC for denying the funding. He believes that Starlink could have made a significant difference, even stating that it “could have saved lives” in North Carolina during Hurricane Helene. Despite Musk’s objections, the FCC remains firm on its position.

Interestingly, two Republican FCC commissioners dissented, arguing that SpaceX was being unfairly held to 2025 targets ahead of schedule. They believed the FCC was too quick to pull the funding.

FCC Chair Rosenworcel has also expressed concerns about Starlink’s dominant position in the satellite market. She recently mentioned that Starlink controls nearly two-thirds of all active satellites, having launched approximately 7,000 since 2018. Rosenworcel stressed the need for more competition in the space industry, arguing that monopolies hinder economic growth.

This investigation will determine whether the FCC acted fairly and whether its decision was based on political considerations. The outcome could have lasting effects on rural broadband expansion and SpaceX’s future plans. The focus remains on providing affordable and reliable high-speed internet to underserved communities.