SpaceX’s Bid to Receive Nearly $900 Million in Subsidies for Starlink Has Been Rejected

The Federal Communications Commission (FCC) rejected Starlink's application since the company couldn't show that it could provide the service; thus, no government money would be utilized to develop its satellite internet service.

Starlink's Satellite Internet Provider Won't Acquire Government Funds to Develop

The government won't be flooding Starlink with grants to support the growth of its satellite internet service. The FCC denied the SpaceX division's request for $885.5 million in funding from the Rural Digital Opportunity Fund. According to a statement, the broadband provider "failed to show" that it could really supply the stated service.

According to FCC head Jessica Rosenworcel, Starlink has a lot of potential, but her organization couldn't possibly justify ten years of subsidies for developing technology that needs a $600 satellite dish. She said that the FCC needs to make the most of the scarce resources for broadband development.

In a competitive auction in December 2020, SpaceX won the offer. It claimed at the time that it would service 35 sites using the subsidies. Additionally, it pledged to satisfy periodic service buildout needs and rates that would be in line with terrestrial broadband.

In that auction, fixed wireless provider LTD Broadband made nearly $1.3 billion, but it too came up short today. After losing its qualifying status in seven states, the corporation was not reasonably competent of implementing the necessary internet service, according to the FCC.

Starlink's starting kit and internet subscription prices doubled this year. Starlink consumers must pay $599 for the satellite dish called Dishy McFlatface plus $110 per month for internet access.

Last year, the FCC cautioned Starlink and other providers that subsidies couldn't be utilized in parking lots and well-served metropolitan areas. Free Press said that $111 million of Starlink's money would go to metropolitan regions that don't need it. The FCC requested providers to give up cash for unneeded locations to clean up the program.

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SpaceX's Starlink was Impacted by a Russian Debris Squall

A Russian space debris storm reportedly had an effect on SpaceX's Starlink constellation on August 6, according to a source from the media.

Dan Oltrogge, the chief scientist of COMSPOC, said at a Cyber World Foundation event at the Small Satellite Conference on Monday that SpaceX spacecraft in the Starlink constellation came near debris created by a Russian anti-satellite test in November (August 8). SpaceNews was the first outlet to break the news.

Pieces of the now-destroyed Cosmos 1408 spacecraft align with satellites launched in a sun-synchronous orbit, which is an orbit that maintains the sun at a constant height concerning Earth, according to the business that monitors space objects and produces reports for customers.

Oltrogge called the close encounter Starlink event a conjunction squall and said that his company saw more than 6,000 comparative approaches that affected 841 satellites, or about 30% of the constellation.

The new squall was partly caused by SpaceX launching a new set of satellites, called Group 3, that are in the same orbit as other sun-synchronous satellites that have been close to anti-satellite weapons (ASAT) debris in the past. "The ASAT puts the orbit itself in danger," Oltrogge said.

Related Article: SpaceX Starlink's Internet Satellite Gets FCC Approval To Be Used on Vehicles in Motion

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