US House committee investigates FCC’s withdrawal of broadband subsidies from Starlink
Lawmakers probe FCC’s denial.
A US House committee revealed on Monday that it is investigating the Federal Communications Commission’s (FCC) decision to deny SpaceX’s satellite internet division, Starlink, $885.5 million in rural broadband subsidies. The FCC had reaffirmed in December that the denial stemmed from Starlink’s failure to meet essential program requirements and its inability to demonstrate that it could deliver the promised services, following SpaceX’s challenge to the decision made in 2022.
House Oversight Committee Chair James Comer, a Republican, has requested the FCC provide relevant documents by October 21 to ensure that the regulatory process was followed properly and not influenced by political motives. The FCC acknowledged receipt of the letter and will respond accordingly.
In December 2020, the FCC initially awarded $9.2 billion to more than 300 bidders for high-speed broadband deployment, with Starlink securing $885.5 million in a 2020 auction aimed at serving rural areas. However, in August 2022, the FCC revoked this funding, citing speed-test data that showed Starlink struggled to meet the program’s basic requirements, despite its commitments to provide high-speed service to 642,000 rural homes and businesses in 35 states.
Musk has strongly criticised the FCC’s ruling, calling it “illegal” and claiming that the funding could have saved lives during Hurricane Helene in North Carolina. FCC Chair Jessica Rosenworcel stated that Starlink’s performance data confirmed the agency’s findings about its uplink and downlink speed issues, adding that the proposal required subscribers to purchase a $600 dish to start service. Two Republican commissioners dissented, arguing that SpaceX was unfairly held to future performance targets. Rosenworcel has since expressed a desire for increased competition in the satellite internet market, emphasising the need to welcome additional companies to promote innovation and reduce monopolistic control.