House Committee Investigates FCC's Denial Of Starlink's $885 Million Subsidy

The House Oversight Committee will be probing the decision of the Federal Communications Commission (FCC) denying the $885.5 million funding of Starlink related to rural broadband subsidies made through the Rural Digital Opportunity Fund (RDOF).

In December, the FCC reaffirmed its decision to deny Starlink its requested funding, alleging that it failed to meet basic program requirements. It also stated that Starlink cannot show that it can meet the promised service.

Republican James Comer, chair of the GOP-led committee furnished a letter to the FCC, requesting it to turn over the documents on its decision by Oct. 21. The panel simply wanted to make sure that the decision of the FCC was not tainted with politics, and that it followed regulatory processes in place in responding to the requested funding. The FCC also confirmed receipt of the letter and would be making the appropriate response.

"In 2020, the FCC awarded SpaceX's Starlink $885.5 million through RDOF. Starlink 'is the world's first and largest satellite constellation using a low Earth orbit to deliver a broadband internet capable of supporting streaming, online gaming, video calls' and more. On August 10, 2022, the FCC rejected Starlink's long-form application to receive funding through RDOF on the basis that the FCC 'cannot afford to subsidize ventures that are not delivering the promised speeds or are not likely to meet program requirements," said Commissioner Comer as per the committees' press release.

In December 2020, the agency awarded approximately $9.2 billion to more than 300 bidders that would deploy high-speed broadband for rural service. Starlink was the one that won the highest in the auction, amounting to $885.5 million, Reuters reported.

However, came August 2022, the FCC denied the funding for Starlink, anchoring its decision on a speed-test data after it agreed to providing 642,000 homes in the rural area, and businesses in 35 states with high-speed Internet.

Just last week, Musk openly criticized the FCC, taking a swipe at how the agency allegedly "illegally" revoked the funding, and saying that had it been approved, "it would probably have saved lives in North Carolina" when Hurricane Helene struck, The Verge reported.

In February, FCC Chair Jessica Rosenworcel told Congress that the data on the public performance of Starlink was a confirmation of its previous finding on its operations.

"Starlink had difficulty meeting the basic uplink and downlink speed standards for the program," Rosenworcel said.

She also said that with Starlink, subscribers would have been required to purchase a $600 dish in order for them to be able to start the service.

Out of five FCC five members, two Republican members dissented from decision in denying the funding.

Earlier this month, the Biden administration said it has plans to deploy dozens of ground-based Starlink devices that connect with satellites to provide internet services to remote areas of southern Appalachia where traditional communication infrastructure has been severely compromised due to hurricane.