The Federal Communications Commission (FCC) has rejected a planned allocation of approximately $900 million to SpaceX‘s Starlink program. This decision came after the FCC determined that Starlink would not be able to meet certain technical and financial goals by 2025. The FCC used national download and upload speed data from 2021 and 2022 to show that it would not be able to meet the minimum 100 Mbps download and 20 Mbps upload speed requirements set for 2025. It does not yet meet these speed requirements, reporting download speeds of 79.04 Mbps across the US.
The FCC’s decision was made by a vote of 3-2, with the vote taking place along partisan lines. In a statement on the FCC’s decision, SpaceX said it was “deeply disappointed and surprised” by the decision and claimed that Starlink had recorded the fastest speeds in areas eligible for RDOF funds. SpaceX plans to launch up to 200 rockets in 2024, most of which will be dedicated to Starlink missions.
While the FCC’s decision means that it will not receive additional funding from the federal government, it does not mean that SpaceX will stop providing services to rural areas. SpaceX said that despite the misjudgment, it will not diminish its commitment to bringing high-speed, low-latency broadband service to Americans and stands ready to partner with the Bureau and Commission to achieve this critical national goal.
