FCC Rejects Starlink’s Bid For RDOF Cash

Key Highlights

• The Federal Communications Commission (FCC) has rejected Starlink’s bid for a share of RDOF cash.
• Chairwoman Rosenworcel said they are rejecting these applications after careful legal, technical, and policy review.

The Federal Communications Commission (FCC) has rejected Starlink’s bid for a share of the Rural Digital Opportunity Fund (RDOF).

Chairwoman Rosenworcel said they are rejecting these applications after careful legal, technical, and policy review. Consumers deserve affordable and reliable high-speed broadband.

She added that they must put scarce universal service dollars to their best possible use as they move into a digital future that demands more powerful and faster networks. They cannot afford to subsidize ventures that are not delivering the promised speeds or are not likely to meet program requirements.

Starlink wanted $885.5 million in aid from the Rural Digital Opportunity Fund (RDOF) to help expand its satellite internet service. As per a statement, the broadband provider failed to demonstrate that it could deliver the claimed service.

Rosenworcel added that Starlink’s technology has real promise. But the question before them was whether to publicly subsidize its still developing technology for consumer broadband that requires users to purchase a $600 dish with nearly $900 million in universal service funds until 2032.

The FCC separately announced the authorization of $21,112,263 in funding to three firms to deploy gigabit connectivity to 15,000 locations across four states: Tennessee, Texas, Utah, and Wyoming.

The RDOF has authorized over $5 billion in funding to bring mostly gigabit broadband to over three million locations across 47 states.

Starlink’s rollout is unlikely to be majorly hindered by the rejection of FCC providing it with RDOF cash. Still, it is clear that the company is going to have to rely on its own funding to build out its satellite constellation.

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