FCC rejects Starlink's bid for US rural internet access funds
(2022/08/11)
- Reference: 1660225507
- News link: https://www.theregister.co.uk/2022/08/11/fcc_starlink_rural_internet/
- Source link:
The US Federal Communications Commission (FCC) has rejected Starlink's application for subsidies under the Rural Digital Opportunity Fund program.
The decision has already drawn criticism from some corners, including from inside the FCC, for failing those without internet access.
In an [1]official notice , the FCC said it rejected the long-form applications from Starlink and another internet service provider, LTD Broadband, to receive support through the [2]Rural Digital Opportunity Fund , a program designed to help boost internet availability in poorly served areas of the US.
[3]
The FCC said the applications from these two companies had failed to demonstrate that the providers would be able to deliver the promised service, and therefore funding those networks "would not be the best use of limited Universal Service Fund dollars to bring broadband to unserved areas across the United State."
[4]
[5]
Both Starlink and LTD Broadband were among the bidders who in 2020 were tentatively awarded a slice of the $20.4 billion that the Rural Digital Opportunity Fund has to distribute over 10 years to bring internet access to millions of homes and small businesses in rural America.
Starlink, which is a satellite broadband service operated by Elon Musk's SpaceX, was awarded $885.5 million in the December 2020 auction, while LTD Broadband won $1.32 billion for its fixed wireless service, delivered from a network of towers akin to a cellular mobile service.
[6]
FCC chair Jessica Rosenworcel acknowledged that Starlink's service in particular had merit, but said it would not be appropriate to use public funds for technology that was still effectively being developed.
"Starlink's technology has real promise," she said in a statement, "but the question before us was whether to publicly subsidize its still developing technology for consumer broadband – which requires that users purchase a $600 dish – with nearly $900 million in universal service funds until 2032."
For LTD Broadband, it may be a case of being overambitious. Although only a relatively small outfit, it submitted and won bids in 15 states, leading to it becoming the largest winning bidder overall.
[7]SpaceX demonstrates that it too can shower the Earth with debris
[8]SpaceX upgrades Starlink to reflect less light, can't launch without its Starship
[9]Philippines logs on to Starlink for remote area internet services
[10]SpaceX: 5G expansion could kill US Starlink broadband
However, it subsequently failed to receive eligible telecommunications carrier status in seven states, rendering it ineligible for support there, according to the FCC, so the review concluded that LTD Broadband was not capable of deploying a network of the scope, scale, and size required to fulfill all its winning bids.
"After careful legal, technical, and policy review, we are rejecting these applications," said Rosenworcel, adding: "We must put scarce universal service dollars to their best possible use as we move into a digital future that demands ever more powerful and faster networks. We cannot afford to subsidize ventures that are not delivering the promised speeds or are not likely to meet program requirements."
[11]
The decision has inevitably drawn criticism already, even from within the FCC itself.
In a statement, Commissioner Brendan Carr stated his surprise at finding out "via a press release while I am on a work trip to remote parts of Alaska" that the FCC had come to this decision, saying it should be making it easier for poorly served communities to get service, "not rejecting a proven satellite technology that is delivering robust, high-speed service today."
"To be clear, this is a decision that tells families in states across the country that they should just keep waiting on the wrong side of the digital divide even though we have the technology to improve their lives now," he concluded.
We asked Starlink for its response to the decision, but the company was not immediately available. ®
Get our [12]Tech Resources
[1] https://www.fcc.gov/document/fcc-rejects-ltd-broadband-starlink-bids-broadband-subsidies
[2] https://rdof.com/
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YvUnuud0nRpOJYWTVgQDAAAAAFQ&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YvUnuud0nRpOJYWTVgQDAAAAAFQ&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YvUnuud0nRpOJYWTVgQDAAAAAFQ&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YvUnuud0nRpOJYWTVgQDAAAAAFQ&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[7] https://www.theregister.com/2022/08/03/spacex_debris/
[8] https://www.theregister.com/2022/08/01/spacex_satellite_brightness/
[9] https://www.theregister.com/2022/07/28/starlink_philippines/
[10] https://www.theregister.com/2022/06/23/starlink_dish_satellite_internet/
[11] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YvUnuud0nRpOJYWTVgQDAAAAAFQ&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[12] https://whitepapers.theregister.com/
The decision has already drawn criticism from some corners, including from inside the FCC, for failing those without internet access.
In an [1]official notice , the FCC said it rejected the long-form applications from Starlink and another internet service provider, LTD Broadband, to receive support through the [2]Rural Digital Opportunity Fund , a program designed to help boost internet availability in poorly served areas of the US.
[3]
The FCC said the applications from these two companies had failed to demonstrate that the providers would be able to deliver the promised service, and therefore funding those networks "would not be the best use of limited Universal Service Fund dollars to bring broadband to unserved areas across the United State."
[4]
[5]
Both Starlink and LTD Broadband were among the bidders who in 2020 were tentatively awarded a slice of the $20.4 billion that the Rural Digital Opportunity Fund has to distribute over 10 years to bring internet access to millions of homes and small businesses in rural America.
Starlink, which is a satellite broadband service operated by Elon Musk's SpaceX, was awarded $885.5 million in the December 2020 auction, while LTD Broadband won $1.32 billion for its fixed wireless service, delivered from a network of towers akin to a cellular mobile service.
[6]
FCC chair Jessica Rosenworcel acknowledged that Starlink's service in particular had merit, but said it would not be appropriate to use public funds for technology that was still effectively being developed.
"Starlink's technology has real promise," she said in a statement, "but the question before us was whether to publicly subsidize its still developing technology for consumer broadband – which requires that users purchase a $600 dish – with nearly $900 million in universal service funds until 2032."
For LTD Broadband, it may be a case of being overambitious. Although only a relatively small outfit, it submitted and won bids in 15 states, leading to it becoming the largest winning bidder overall.
[7]SpaceX demonstrates that it too can shower the Earth with debris
[8]SpaceX upgrades Starlink to reflect less light, can't launch without its Starship
[9]Philippines logs on to Starlink for remote area internet services
[10]SpaceX: 5G expansion could kill US Starlink broadband
However, it subsequently failed to receive eligible telecommunications carrier status in seven states, rendering it ineligible for support there, according to the FCC, so the review concluded that LTD Broadband was not capable of deploying a network of the scope, scale, and size required to fulfill all its winning bids.
"After careful legal, technical, and policy review, we are rejecting these applications," said Rosenworcel, adding: "We must put scarce universal service dollars to their best possible use as we move into a digital future that demands ever more powerful and faster networks. We cannot afford to subsidize ventures that are not delivering the promised speeds or are not likely to meet program requirements."
[11]
The decision has inevitably drawn criticism already, even from within the FCC itself.
In a statement, Commissioner Brendan Carr stated his surprise at finding out "via a press release while I am on a work trip to remote parts of Alaska" that the FCC had come to this decision, saying it should be making it easier for poorly served communities to get service, "not rejecting a proven satellite technology that is delivering robust, high-speed service today."
"To be clear, this is a decision that tells families in states across the country that they should just keep waiting on the wrong side of the digital divide even though we have the technology to improve their lives now," he concluded.
We asked Starlink for its response to the decision, but the company was not immediately available. ®
Get our [12]Tech Resources
[1] https://www.fcc.gov/document/fcc-rejects-ltd-broadband-starlink-bids-broadband-subsidies
[2] https://rdof.com/
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YvUnuud0nRpOJYWTVgQDAAAAAFQ&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YvUnuud0nRpOJYWTVgQDAAAAAFQ&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YvUnuud0nRpOJYWTVgQDAAAAAFQ&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YvUnuud0nRpOJYWTVgQDAAAAAFQ&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[7] https://www.theregister.com/2022/08/03/spacex_debris/
[8] https://www.theregister.com/2022/08/01/spacex_satellite_brightness/
[9] https://www.theregister.com/2022/07/28/starlink_philippines/
[10] https://www.theregister.com/2022/06/23/starlink_dish_satellite_internet/
[11] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YvUnuud0nRpOJYWTVgQDAAAAAFQ&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[12] https://whitepapers.theregister.com/
usbac
What about all of the billions of taxpayer's dollars that were given to AT&T, Comcast, and Charter, who then stopped building out their rural infrastructure? Are we, the taxpayers going to be getting that money back?
Oh, that's right, the big ISPs spend a big chunk of that money bribing our lawmakers, and apparently Starlink doesn't. They better start "investing" in the right things if they are going to compete.
I thought Rosenworcel was going to be a refreshing change to the FCC. I guess she is just as dim-witted as Pai was corrupt. Expecting anything useful and beneficial to the public to come out of DC is just unrealistic.
aki009
If you are going to call Pai corrupt, I fail to get why you wouldn't extend the same to Rosenworcel. She's been in the game long enough to not be able to play the dummy card.
criticizm
Charlie Clark
Really? Go yank spelling if you like, but if you're going to use it at least get it right!
Are all improving technologies disqualified?
That seems to be the gist of the FCC's reasoning.
Is it good enough and reliable enough to deliver what people need?